Correlation Between Nationwide Investor and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Nationwide Investor 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 Nationwide Investor 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 Nationwide Investor Destinations and Astor Longshort Fund, you can compare the effects of market volatilities on Nationwide Investor 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 Nationwide Investor with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Investor and Astor Long/short.
Diversification Opportunities for Nationwide Investor and Astor Long/short
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nationwide and Astor is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Investor Destinatio 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 Nationwide Investor 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 Nationwide Investor Destinations 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 Nationwide Investor i.e., Nationwide Investor and Astor Long/short go up and down completely randomly.
Pair Corralation between Nationwide Investor and Astor Long/short
Assuming the 90 days horizon Nationwide Investor Destinations is expected to generate 1.51 times more return on investment than Astor Long/short. However, Nationwide Investor is 1.51 times more volatile than Astor Longshort Fund. It trades about 0.36 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.46 per unit of risk. If you would invest 1,043 in Nationwide Investor Destinations on September 2, 2024 and sell it today you would earn a total of 45.00 from holding Nationwide Investor Destinations or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide Investor Destinatio vs. Astor Longshort Fund
Performance |
| Timeline |
| Nationwide Investor |
| Astor Long/short |
Nationwide Investor and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Investor and Astor Long/short
The main advantage of trading using opposite Nationwide Investor and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Investor 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.| Nationwide Investor vs. Ab Bond Inflation | Nationwide Investor vs. American Funds Inflation | Nationwide Investor vs. Ab Bond Inflation | Nationwide Investor vs. Oklahoma College Savings |
| Astor Long/short vs. Fidelity Series Government | Astor Long/short vs. Government Securities Fund | Astor Long/short vs. Dws Government Money | Astor Long/short vs. Dreyfus Government Cash |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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