Correlation Between Federated Short and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Federated Short 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 Federated Short and Astor Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Short Term Income and Astor Longshort Fund, you can compare the effects of market volatilities on Federated Short 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 Federated Short with a short position of Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Short and Astor Longshort.
Diversification Opportunities for Federated Short and Astor Longshort
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Federated and Astor is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Federated Short Term Income and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort and Federated Short 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 Federated Short Term Income 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 Federated Short i.e., Federated Short and Astor Longshort go up and down completely randomly.
Pair Corralation between Federated Short and Astor Longshort
Assuming the 90 days horizon Federated Short is expected to generate 2.0 times less return on investment than Astor Longshort. But when comparing it to its historical volatility, Federated Short Term Income is 2.57 times less risky than Astor Longshort. It trades about 0.19 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,195 in Astor Longshort Fund on September 12, 2024 and sell it today you would earn a total of 232.00 from holding Astor Longshort Fund or generate 19.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Short Term Income vs. Astor Longshort Fund
Performance |
| Timeline |
| Federated Short Term |
| Astor Longshort |
Federated Short and Astor Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Short and Astor Longshort
The main advantage of trading using opposite Federated Short and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Short 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.| Federated Short vs. Federated Hermes Mdt | Federated Short vs. Federated Mdt Large | Federated Short vs. Federated High Income | Federated Short vs. Federated Hermes Sdg |
| Astor Longshort vs. SCOR PK | Astor Longshort vs. Morningstar Unconstrained Allocation | Astor Longshort vs. Via Renewables | Astor Longshort vs. Bondbloxx ETF Trust |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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