Correlation Between Sp Smallcap and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Sp Smallcap 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 Sp Smallcap 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 Sp Smallcap 600 and Astor Longshort Fund, you can compare the effects of market volatilities on Sp Smallcap 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 Sp Smallcap with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sp Smallcap and Astor Long/short.
Diversification Opportunities for Sp Smallcap and Astor Long/short
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RYSVX and Astor is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sp Smallcap 600 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 Sp Smallcap 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 Sp Smallcap 600 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 Sp Smallcap i.e., Sp Smallcap and Astor Long/short go up and down completely randomly.
Pair Corralation between Sp Smallcap and Astor Long/short
Assuming the 90 days horizon Sp Smallcap 600 is expected to generate 2.07 times more return on investment than Astor Long/short. However, Sp Smallcap is 2.07 times more volatile than Astor Longshort Fund. It trades about 0.21 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.25 per unit of risk. If you would invest 20,537 in Sp Smallcap 600 on October 24, 2024 and sell it today you would earn a total of 731.00 from holding Sp Smallcap 600 or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sp Smallcap 600 vs. Astor Longshort Fund
Performance |
| Timeline |
| Sp Smallcap 600 |
| Astor Long/short |
Sp Smallcap and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sp Smallcap and Astor Long/short
The main advantage of trading using opposite Sp Smallcap and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sp Smallcap 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.| Sp Smallcap vs. Real Estate Ultrasector | Sp Smallcap vs. American Century Real | Sp Smallcap vs. Rems Real Estate | Sp Smallcap vs. Short Real Estate |
| Astor Long/short vs. Intermediate Term Tax Free Bond | Astor Long/short vs. Bbh Intermediate Municipal | Astor Long/short vs. Blackrock Pa Muni | Astor Long/short vs. Hartford Municipal Income |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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