Correlation Between Pacific Funds and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Pacific Funds 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 Pacific Funds 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 Pacific Funds Small Cap and Astor Longshort Fund, you can compare the effects of market volatilities on Pacific Funds 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 Pacific Funds with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Funds and Astor Long/short.
Diversification Opportunities for Pacific Funds and Astor Long/short
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pacific and Astor is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Funds Small Cap 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 Pacific Funds 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 Pacific Funds Small Cap 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 Pacific Funds i.e., Pacific Funds and Astor Long/short go up and down completely randomly.
Pair Corralation between Pacific Funds and Astor Long/short
If you would invest 1,281 in Astor Longshort Fund on August 24, 2024 and sell it today you would earn a total of 28.00 from holding Astor Longshort Fund or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Pacific Funds Small Cap vs. Astor Longshort Fund
Performance |
| Timeline |
| Pacific Funds Small |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Astor Long/short |
Pacific Funds and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Funds and Astor Long/short
The main advantage of trading using opposite Pacific Funds and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Funds 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.| Pacific Funds vs. Federated High Yield | Pacific Funds vs. Ab High Income | Pacific Funds vs. Ppm High Yield | Pacific Funds vs. Morningstar Aggressive Growth |
| Astor Long/short vs. Pace Municipal Fixed | Astor Long/short vs. Metropolitan West Porate | Astor Long/short vs. Alliancebernstein National Municipal | Astor Long/short vs. Old Westbury Municipal |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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