Correlation Between Astor Long/short and Standpoint Multi-asset
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Standpoint Multi-asset 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 Standpoint Multi-asset 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 Standpoint Multi Asset, you can compare the effects of market volatilities on Astor Long/short and Standpoint Multi-asset 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 Standpoint Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Standpoint Multi-asset.
Diversification Opportunities for Astor Long/short and Standpoint Multi-asset
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astor and Standpoint is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Standpoint Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standpoint Multi Asset 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 Standpoint Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standpoint Multi Asset has no effect on the direction of Astor Long/short i.e., Astor Long/short and Standpoint Multi-asset go up and down completely randomly.
Pair Corralation between Astor Long/short and Standpoint Multi-asset
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.54 times more return on investment than Standpoint Multi-asset. However, Astor Longshort Fund is 1.85 times less risky than Standpoint Multi-asset. It trades about 0.15 of its potential returns per unit of risk. Standpoint Multi Asset is currently generating about 0.01 per unit of risk. If you would invest 1,222 in Astor Longshort Fund on September 1, 2024 and sell it today you would earn a total of 99.00 from holding Astor Longshort Fund or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Astor Longshort Fund vs. Standpoint Multi Asset
Performance |
| Timeline |
| Astor Long/short |
| Standpoint Multi Asset |
Astor Long/short and Standpoint Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Standpoint Multi-asset
The main advantage of trading using opposite Astor Long/short and Standpoint Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Standpoint Multi-asset 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 Standpoint Multi-asset will offset losses from the drop in Standpoint Multi-asset's long position.The idea behind Astor Longshort Fund and Standpoint Multi Asset pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Standpoint Multi-asset vs. Standpoint Multi Asset | Standpoint Multi-asset vs. Mid Cap 15x Strategy | Standpoint Multi-asset vs. Thrivent High Yield | Standpoint Multi-asset vs. American High Income Municipal |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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