Correlation Between Global Bond and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Global Bond 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 Global Bond and Astor Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Bond Fund and Astor Longshort Fund, you can compare the effects of market volatilities on Global Bond 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 Global Bond with a short position of Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Bond and Astor Longshort.
Diversification Opportunities for Global Bond and Astor Longshort
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and Astor is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Global Bond Fund and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort and Global Bond 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 Global Bond Fund 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 Global Bond i.e., Global Bond and Astor Longshort go up and down completely randomly.
Pair Corralation between Global Bond and Astor Longshort
Assuming the 90 days horizon Global Bond Fund is expected to under-perform the Astor Longshort. In addition to that, Global Bond is 1.1 times more volatile than Astor Longshort Fund. It trades about -0.02 of its total potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.13 per unit of volatility. 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 | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Global Bond Fund vs. Astor Longshort Fund
Performance |
| Timeline |
| Global Bond Fund |
| Astor Longshort |
Global Bond and Astor Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Bond and Astor Longshort
The main advantage of trading using opposite Global Bond and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Bond 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.| Global Bond vs. Jhancock Global Equity | Global Bond vs. Ab Global Risk | Global Bond vs. Ab Global Bond | Global Bond vs. Scharf Global Opportunity |
| 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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