Correlation Between Astor Long/short and Hcm Income
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Hcm Income 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 Hcm Income 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 Hcm Income Plus, you can compare the effects of market volatilities on Astor Long/short and Hcm Income 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 Hcm Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Hcm Income.
Diversification Opportunities for Astor Long/short and Hcm Income
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Hcm is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Hcm Income Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hcm Income Plus 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 Hcm Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hcm Income Plus has no effect on the direction of Astor Long/short i.e., Astor Long/short and Hcm Income go up and down completely randomly.
Pair Corralation between Astor Long/short and Hcm Income
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.36 times more return on investment than Hcm Income. However, Astor Longshort Fund is 2.81 times less risky than Hcm Income. It trades about 0.25 of its potential returns per unit of risk. Hcm Income Plus is currently generating about 0.07 per unit of risk. If you would invest 1,287 in Astor Longshort Fund on August 30, 2024 and sell it today you would earn a total of 31.00 from holding Astor Longshort Fund or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Hcm Income Plus
Performance |
| Timeline |
| Astor Long/short |
| Hcm Income Plus |
Astor Long/short and Hcm Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Hcm Income
The main advantage of trading using opposite Astor Long/short and Hcm Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Hcm Income 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 Hcm Income will offset losses from the drop in Hcm Income's long position.| Astor Long/short vs. Qs Large Cap | Astor Long/short vs. Aam Select Income | Astor Long/short vs. Iaadx | Astor Long/short vs. Materials Portfolio Fidelity |
| Hcm Income vs. Hcm Dividend Sector | Hcm Income vs. Hcm Dividend Sector | Hcm Income vs. Hcm Tactical Growth | Hcm Income vs. Hcm Dynamic Income |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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