Correlation Between Allianzgi Health and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Allianzgi Health 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 Allianzgi Health 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 Allianzgi Health Sciences and Astor Longshort Fund, you can compare the effects of market volatilities on Allianzgi Health 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 Allianzgi Health with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Health and Astor Long/short.
Diversification Opportunities for Allianzgi Health and Astor Long/short
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allianzgi and Astor is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Health Sciences 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 Allianzgi Health 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 Allianzgi Health Sciences 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 Allianzgi Health i.e., Allianzgi Health and Astor Long/short go up and down completely randomly.
Pair Corralation between Allianzgi Health and Astor Long/short
Assuming the 90 days horizon Allianzgi Health is expected to generate 2.06 times less return on investment than Astor Long/short. In addition to that, Allianzgi Health is 2.24 times more volatile than Astor Longshort Fund. It trades about 0.03 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 1,110 in Astor Longshort Fund on September 4, 2024 and sell it today you would earn a total of 210.00 from holding Astor Longshort Fund or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Allianzgi Health Sciences vs. Astor Longshort Fund
Performance |
| Timeline |
| Allianzgi Health Sciences |
| Astor Long/short |
Allianzgi Health and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Health and Astor Long/short
The main advantage of trading using opposite Allianzgi Health and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Health 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.| Allianzgi Health vs. Ftfa Franklin Templeton Growth | Allianzgi Health vs. Pace Large Growth | Allianzgi Health vs. Smallcap Growth Fund | Allianzgi Health vs. William Blair Growth |
| Astor Long/short vs. Wilmington Funds | Astor Long/short vs. Dws Government Money | Astor Long/short vs. Wt Mutual Fund | Astor Long/short vs. Hsbc Treasury Money |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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