Correlation Between Astor Long/short and Gabelli Equity
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Gabelli Equity 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 Gabelli Equity 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 Gabelli Equity Trust, you can compare the effects of market volatilities on Astor Long/short and Gabelli Equity 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 Gabelli Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Gabelli Equity.
Diversification Opportunities for Astor Long/short and Gabelli Equity
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Astor and Gabelli is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Gabelli Equity Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Equity Trust 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 Gabelli Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Equity Trust has no effect on the direction of Astor Long/short i.e., Astor Long/short and Gabelli Equity go up and down completely randomly.
Pair Corralation between Astor Long/short and Gabelli Equity
Assuming the 90 days horizon Astor Long/short is expected to generate 1.39 times less return on investment than Gabelli Equity. But when comparing it to its historical volatility, Astor Longshort Fund is 2.3 times less risky than Gabelli Equity. It trades about 0.12 of its potential returns per unit of risk. Gabelli Equity Trust is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 505.00 in Gabelli Equity Trust on August 27, 2024 and sell it today you would earn a total of 64.00 from holding Gabelli Equity Trust or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Gabelli Equity Trust
Performance |
| Timeline |
| Astor Long/short |
| Gabelli Equity Trust |
Astor Long/short and Gabelli Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Gabelli Equity
The main advantage of trading using opposite Astor Long/short and Gabelli Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Gabelli Equity 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 Gabelli Equity will offset losses from the drop in Gabelli Equity's long position.| Astor Long/short vs. Hennessy Technology Fund | Astor Long/short vs. Pgim Jennison Technology | Astor Long/short vs. Janus Global Technology | Astor Long/short vs. Fidelity Advisor Technology |
| Gabelli Equity vs. Cornerstone Strategic Value | Gabelli Equity vs. Oxford Lane Capital | Gabelli Equity vs. Orchid Island Capital | Gabelli Equity vs. Guggenheim Strategic Opportunities |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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