Correlation Between Cmg Ultra and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Cmg Ultra 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 Cmg Ultra and Astor Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cmg Ultra Short and Astor Longshort Fund, you can compare the effects of market volatilities on Cmg Ultra 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 Cmg Ultra with a short position of Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cmg Ultra and Astor Longshort.
Diversification Opportunities for Cmg Ultra and Astor Longshort
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cmg and Astor is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cmg Ultra Short and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort and Cmg Ultra 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 Cmg Ultra Short 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 Cmg Ultra i.e., Cmg Ultra and Astor Longshort go up and down completely randomly.
Pair Corralation between Cmg Ultra and Astor Longshort
Assuming the 90 days horizon Cmg Ultra is expected to generate 1.94 times less return on investment than Astor Longshort. But when comparing it to its historical volatility, Cmg Ultra Short is 3.56 times less risky than Astor Longshort. It trades about 0.25 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,146 in Astor Longshort Fund on September 14, 2024 and sell it today you would earn a total of 281.00 from holding Astor Longshort Fund or generate 24.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cmg Ultra Short vs. Astor Longshort Fund
Performance |
| Timeline |
| Cmg Ultra Short |
| Astor Longshort |
Cmg Ultra and Astor Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cmg Ultra and Astor Longshort
The main advantage of trading using opposite Cmg Ultra and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cmg Ultra 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.| Cmg Ultra vs. Extended Market Index | Cmg Ultra vs. Ab All Market | Cmg Ultra vs. Sp Midcap Index | Cmg Ultra vs. Ashmore Emerging Markets |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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