Correlation Between Intermediate Government and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Intermediate Government 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 Intermediate Government and Astor Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermediate Government Bond and Astor Longshort Fund, you can compare the effects of market volatilities on Intermediate Government 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 Intermediate Government with a short position of Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Government and Astor Longshort.
Diversification Opportunities for Intermediate Government and Astor Longshort
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Intermediate and Astor is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Government Bond and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort and Intermediate Government 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 Intermediate Government Bond 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 Intermediate Government i.e., Intermediate Government and Astor Longshort go up and down completely randomly.
Pair Corralation between Intermediate Government and Astor Longshort
Assuming the 90 days horizon Intermediate Government is expected to generate 3.11 times less return on investment than Astor Longshort. But when comparing it to its historical volatility, Intermediate Government Bond is 3.74 times less risky than Astor Longshort. It trades about 0.15 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 1,166 in Astor Longshort Fund on September 12, 2024 and sell it today you would earn a total of 147.00 from holding Astor Longshort Fund or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermediate Government Bond vs. Astor Longshort Fund
Performance |
| Timeline |
| Intermediate Government |
| Astor Longshort |
Intermediate Government and Astor Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Government and Astor Longshort
The main advantage of trading using opposite Intermediate Government and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Government 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.| Intermediate Government vs. SCOR PK | Intermediate Government vs. Morningstar Unconstrained Allocation | Intermediate Government vs. Via Renewables | Intermediate Government vs. Bondbloxx ETF Trust |
| Astor Longshort vs. Intermediate Government Bond | Astor Longshort vs. Sit Government Securities | Astor Longshort vs. Schwab Government Money | Astor Longshort vs. Prudential Government Income |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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