Correlation Between James Aggressive and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both James Aggressive 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 James Aggressive 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 James Aggressive Allocation and Astor Longshort Fund, you can compare the effects of market volatilities on James Aggressive 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 James Aggressive with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Aggressive and Astor Long/short.
Diversification Opportunities for James Aggressive and Astor Long/short
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between James and Astor is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding James Aggressive Allocation 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 James Aggressive 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 James Aggressive Allocation 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 James Aggressive i.e., James Aggressive and Astor Long/short go up and down completely randomly.
Pair Corralation between James Aggressive and Astor Long/short
Assuming the 90 days horizon James Aggressive Allocation is expected to under-perform the Astor Long/short. In addition to that, James Aggressive is 1.72 times more volatile than Astor Longshort Fund. It trades about -0.19 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 1,295 in Astor Longshort Fund on December 4, 2024 and sell it today you would lose (15.00) from holding Astor Longshort Fund or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Aggressive Allocation vs. Astor Longshort Fund
Performance |
| Timeline |
| James Aggressive All |
| Astor Long/short |
James Aggressive and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Aggressive and Astor Long/short
The main advantage of trading using opposite James Aggressive and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Aggressive 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.| James Aggressive vs. Us Government Securities | James Aggressive vs. Federated Government Income | James Aggressive vs. Us Government Securities | James Aggressive vs. Blackrock Government Bond |
| Astor Long/short vs. Sprott Gold Equity | Astor Long/short vs. Gold And Precious | Astor Long/short vs. Franklin Gold Precious | Astor Long/short vs. Investment Managers Series |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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