Correlation Between Dfa Intermediate and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Dfa Intermediate 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 Dfa Intermediate and Astor Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dfa Intermediate Term and Astor Longshort Fund, you can compare the effects of market volatilities on Dfa Intermediate 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 Dfa Intermediate with a short position of Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dfa Intermediate and Astor Longshort.
Diversification Opportunities for Dfa Intermediate and Astor Longshort
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dfa and Astor is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dfa Intermediate Term and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort and Dfa Intermediate 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 Dfa Intermediate Term 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 Dfa Intermediate i.e., Dfa Intermediate and Astor Longshort go up and down completely randomly.
Pair Corralation between Dfa Intermediate and Astor Longshort
Assuming the 90 days horizon Dfa Intermediate is expected to generate 1.43 times less return on investment than Astor Longshort. But when comparing it to its historical volatility, Dfa Intermediate Term is 2.73 times less risky than Astor Longshort. It trades about 0.24 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 1,413 in Astor Longshort Fund on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Astor Longshort Fund or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dfa Intermediate Term vs. Astor Longshort Fund
Performance |
| Timeline |
| Dfa Intermediate Term |
| Astor Longshort |
Dfa Intermediate and Astor Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dfa Intermediate and Astor Longshort
The main advantage of trading using opposite Dfa Intermediate and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dfa Intermediate 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.| Dfa Intermediate vs. Barings Emerging Markets | Dfa Intermediate vs. Pnc Emerging Markets | Dfa Intermediate vs. Ab All Market | Dfa Intermediate vs. Rbc 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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