Correlation Between Astor Long/short and Brandes International
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Brandes International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Astor Long/short and Brandes International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Brandes International Equity, you can compare the effects of market volatilities on Astor Long/short and Brandes International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Astor Long/short with a short position of Brandes International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Brandes International.
Diversification Opportunities for Astor Long/short and Brandes International
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astor and Brandes is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Brandes International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes International and Astor Long/short is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Astor Longshort Fund are associated (or correlated) with Brandes International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes International has no effect on the direction of Astor Long/short i.e., Astor Long/short and Brandes International go up and down completely randomly.
Pair Corralation between Astor Long/short and Brandes International
Assuming the 90 days horizon Astor Longshort Fund is expected to under-perform the Brandes International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Astor Longshort Fund is 1.84 times less risky than Brandes International. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Brandes International Equity is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 2,193 in Brandes International Equity on November 28, 2024 and sell it today you would earn a total of 138.00 from holding Brandes International Equity or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Astor Longshort Fund vs. Brandes International Equity
Performance |
| Timeline |
| Astor Long/short |
| Brandes International |
Astor Long/short and Brandes International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Brandes International
The main advantage of trading using opposite Astor Long/short and Brandes International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Brandes International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brandes International will offset losses from the drop in Brandes International's long position.| Astor Long/short vs. Qs Growth Fund | Astor Long/short vs. L Abbett Growth | Astor Long/short vs. T Rowe Price | Astor Long/short vs. Touchstone Sands Capital |
| Brandes International vs. Tcm Small Cap | Brandes International vs. Vanguard Short Term Investment Grade | Brandes International vs. Goldman Sachs Growth | Brandes International vs. Us Small Cap |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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