Correlation Between Astor Star and Nasdaq-100 Fund
Can any of the company-specific risk be diversified away by investing in both Astor Star and Nasdaq-100 Fund 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 Star and Nasdaq-100 Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Star Fund and Nasdaq 100 Fund Class, you can compare the effects of market volatilities on Astor Star and Nasdaq-100 Fund 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 Star with a short position of Nasdaq-100 Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Star and Nasdaq-100 Fund.
Diversification Opportunities for Astor Star and Nasdaq-100 Fund
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Nasdaq-100 is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Astor Star Fund and Nasdaq 100 Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Fund and Astor Star 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 Star Fund are associated (or correlated) with Nasdaq-100 Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 Fund has no effect on the direction of Astor Star i.e., Astor Star and Nasdaq-100 Fund go up and down completely randomly.
Pair Corralation between Astor Star and Nasdaq-100 Fund
Assuming the 90 days horizon Astor Star Fund is expected to generate 0.58 times more return on investment than Nasdaq-100 Fund. However, Astor Star Fund is 1.71 times less risky than Nasdaq-100 Fund. It trades about 0.24 of its potential returns per unit of risk. Nasdaq 100 Fund Class is currently generating about 0.12 per unit of risk. If you would invest 1,383 in Astor Star Fund on August 24, 2024 and sell it today you would earn a total of 49.00 from holding Astor Star Fund or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Star Fund vs. Nasdaq 100 Fund Class
Performance |
| Timeline |
| Astor Star Fund |
| Nasdaq 100 Fund |
Astor Star and Nasdaq-100 Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Star and Nasdaq-100 Fund
The main advantage of trading using opposite Astor Star and Nasdaq-100 Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Star position performs unexpectedly, Nasdaq-100 Fund 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 Nasdaq-100 Fund will offset losses from the drop in Nasdaq-100 Fund's long position.| Astor Star vs. Ab Municipal Bond | Astor Star vs. Arrow Managed Futures | Astor Star vs. Schwab Treasury Inflation | Astor Star vs. Short Duration Inflation |
| Nasdaq-100 Fund vs. Nasdaq 100 Fund Class | Nasdaq-100 Fund vs. Nasdaq 100 Fund Class | Nasdaq-100 Fund vs. Nasdaq 100 2x Strategy | Nasdaq-100 Fund vs. Dow 2x Strategy |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |