Correlation Between Frontier Mfg and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Frontier Mfg 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 Frontier Mfg 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 Frontier Mfg Global and Astor Longshort Fund, you can compare the effects of market volatilities on Frontier Mfg 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 Frontier Mfg with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frontier Mfg and Astor Long/short.
Diversification Opportunities for Frontier Mfg and Astor Long/short
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Frontier and Astor is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Frontier Mfg Global 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 Frontier Mfg 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 Frontier Mfg Global 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 Frontier Mfg i.e., Frontier Mfg and Astor Long/short go up and down completely randomly.
Pair Corralation between Frontier Mfg and Astor Long/short
Assuming the 90 days horizon Frontier Mfg Global is expected to generate 1.93 times more return on investment than Astor Long/short. However, Frontier Mfg is 1.93 times more volatile than Astor Longshort Fund. It trades about 0.12 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.11 per unit of risk. If you would invest 1,036 in Frontier Mfg Global on September 4, 2024 and sell it today you would earn a total of 532.00 from holding Frontier Mfg Global or generate 51.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Frontier Mfg Global vs. Astor Longshort Fund
Performance |
| Timeline |
| Frontier Mfg Global |
| Astor Long/short |
Frontier Mfg and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frontier Mfg and Astor Long/short
The main advantage of trading using opposite Frontier Mfg and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frontier Mfg 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.| Frontier Mfg vs. Wt Mutual Fund | Frontier Mfg vs. Wells Fargo Funds | Frontier Mfg vs. Prudential Government Money | Frontier Mfg vs. Blackrock Exchange Portfolio |
| Astor Long/short vs. Virtus Seix Government | Astor Long/short vs. Dunham Porategovernment Bond | Astor Long/short vs. Dreyfus Government Cash | Astor Long/short vs. Dws Government Money |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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