Correlation Between Boston Partners and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Boston Partners and Astor Longshort 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 Boston Partners and Astor Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Longshort and Astor Longshort Fund, you can compare the effects of market volatilities on Boston Partners and Astor Longshort 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 Boston Partners with a short position of Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Astor Longshort.
Diversification Opportunities for Boston Partners and Astor Longshort
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boston and Astor is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Longshort and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort and Boston Partners 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 Boston Partners Longshort are associated (or correlated) with Astor Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Longshort has no effect on the direction of Boston Partners i.e., Boston Partners and Astor Longshort go up and down completely randomly.
Pair Corralation between Boston Partners and Astor Longshort
Assuming the 90 days horizon Boston Partners Longshort is expected to under-perform the Astor Longshort. In addition to that, Boston Partners is 2.48 times more volatile than Astor Longshort Fund. It trades about -0.03 of its total potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.13 per unit of volatility. If you would invest 1,333 in Astor Longshort Fund on September 15, 2024 and sell it today you would earn a total of 89.00 from holding Astor Longshort Fund or generate 6.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Longshort vs. Astor Longshort Fund
Performance |
| Timeline |
| Boston Partners Longshort |
| Astor Longshort |
Boston Partners and Astor Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Astor Longshort
The main advantage of trading using opposite Boston Partners and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners position performs unexpectedly, Astor Longshort 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 Astor Longshort will offset losses from the drop in Astor Longshort's long position.| Boston Partners vs. Blackrock Midcap Index | Boston Partners vs. The Arbitrage Fund | Boston Partners vs. Calamos Market Neutral | Boston Partners vs. Diamond Hill Long Short |
| Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Longshort Fund | Astor Longshort vs. Astor Longshort Fund |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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