Correlation Between Carillon Reams and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Carillon Reams and Astor Long/short 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 Carillon Reams and Astor Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carillon Reams Core and Astor Longshort Fund, you can compare the effects of market volatilities on Carillon Reams and Astor Long/short 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 Carillon Reams with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carillon Reams and Astor Long/short.
Diversification Opportunities for Carillon Reams and Astor Long/short
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carillon and Astor is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Carillon Reams Core and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short and Carillon Reams 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 Carillon Reams Core are associated (or correlated) with Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Carillon Reams i.e., Carillon Reams and Astor Long/short go up and down completely randomly.
Pair Corralation between Carillon Reams and Astor Long/short
Assuming the 90 days horizon Carillon Reams is expected to generate 4.45 times less return on investment than Astor Long/short. In addition to that, Carillon Reams is 1.2 times more volatile than Astor Longshort Fund. It trades about 0.02 of its total potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.11 per unit of volatility. If you would invest 1,188 in Astor Longshort Fund on September 4, 2024 and sell it today you would earn a total of 243.00 from holding Astor Longshort Fund or generate 20.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Carillon Reams Core vs. Astor Longshort Fund
Performance |
| Timeline |
| Carillon Reams Core |
| Astor Long/short |
Carillon Reams and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carillon Reams and Astor Long/short
The main advantage of trading using opposite Carillon Reams and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carillon Reams position performs unexpectedly, Astor Long/short 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 Long/short will offset losses from the drop in Astor Long/short's long position.| Carillon Reams vs. Red Oak Technology | Carillon Reams vs. Dreyfus Technology Growth | Carillon Reams vs. Technology Ultrasector Profund | Carillon Reams vs. Towpath Technology |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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