Correlation Between Limited Term and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Limited Term 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 Limited Term 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 Limited Term Tax and Astor Longshort Fund, you can compare the effects of market volatilities on Limited Term 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 Limited Term with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Limited Term and Astor Long/short.
Diversification Opportunities for Limited Term and Astor Long/short
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LIMITED and Astor is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Limited Term Tax 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 Limited Term 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 Limited Term Tax 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 Limited Term i.e., Limited Term and Astor Long/short go up and down completely randomly.
Pair Corralation between Limited Term and Astor Long/short
Assuming the 90 days horizon Limited Term is expected to generate 3.34 times less return on investment than Astor Long/short. But when comparing it to its historical volatility, Limited Term Tax is 2.81 times less risky than Astor Long/short. It trades about 0.14 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,306 in Astor Longshort Fund on September 3, 2024 and sell it today you would earn a total of 125.00 from holding Astor Longshort Fund or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Limited Term Tax vs. Astor Longshort Fund
Performance |
| Timeline |
| Limited Term Tax |
| Astor Long/short |
Limited Term and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Limited Term and Astor Long/short
The main advantage of trading using opposite Limited Term and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Limited Term 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.| Limited Term vs. Tax Exempt Bond | Limited Term vs. American High Income Municipal | Limited Term vs. Us Government Securities | Limited Term vs. HUMANA INC |
| Astor Long/short vs. Fpa Queens Road | Astor Long/short vs. American Century Etf | Astor Long/short vs. Mutual Of America | Astor Long/short vs. Mid Cap Value Profund |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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