Correlation Between Maryland Short and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Maryland Short 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 Maryland Short 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 Maryland Short Term Tax Free and Astor Longshort Fund, you can compare the effects of market volatilities on Maryland Short 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 Maryland Short with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maryland Short and Astor Long/short.
Diversification Opportunities for Maryland Short and Astor Long/short
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maryland and Astor is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Maryland Short Term Tax Free 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 Maryland Short 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 Maryland Short Term Tax Free 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 Maryland Short i.e., Maryland Short and Astor Long/short go up and down completely randomly.
Pair Corralation between Maryland Short and Astor Long/short
Assuming the 90 days horizon Maryland Short is expected to generate 6.21 times less return on investment than Astor Long/short. But when comparing it to its historical volatility, Maryland Short Term Tax Free is 3.6 times less risky than Astor Long/short. It trades about 0.15 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,393 in Astor Longshort Fund on August 30, 2024 and sell it today you would earn a total of 34.00 from holding Astor Longshort Fund or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maryland Short Term Tax Free vs. Astor Longshort Fund
Performance |
| Timeline |
| Maryland Short Term |
| Astor Long/short |
Maryland Short and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maryland Short and Astor Long/short
The main advantage of trading using opposite Maryland Short and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maryland Short 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.| Maryland Short vs. Maryland Tax Free Bond | Maryland Short vs. Georgia Tax Free Bond | Maryland Short vs. New York Tax Free | Maryland Short vs. T Rowe Price |
| Astor Long/short vs. Ambrus Core Bond | Astor Long/short vs. Ms Global Fixed | Astor Long/short vs. T Rowe Price | Astor Long/short vs. Multisector Bond Sma |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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