Correlation Between Moderately Aggressive and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Moderately Aggressive 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 Moderately Aggressive 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 Moderately Aggressive Balanced and Astor Longshort Fund, you can compare the effects of market volatilities on Moderately Aggressive 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 Moderately Aggressive with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moderately Aggressive and Astor Long/short.
Diversification Opportunities for Moderately Aggressive and Astor Long/short
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Moderately and Astor is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Moderately Aggressive Balanced 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 Moderately Aggressive 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 Moderately Aggressive Balanced 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 Moderately Aggressive i.e., Moderately Aggressive and Astor Long/short go up and down completely randomly.
Pair Corralation between Moderately Aggressive and Astor Long/short
Assuming the 90 days horizon Moderately Aggressive Balanced is expected to generate 1.49 times more return on investment than Astor Long/short. However, Moderately Aggressive is 1.49 times more volatile than Astor Longshort Fund. It trades about 0.13 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.19 per unit of risk. If you would invest 1,205 in Moderately Aggressive Balanced on August 24, 2024 and sell it today you would earn a total of 21.00 from holding Moderately Aggressive Balanced or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moderately Aggressive Balanced vs. Astor Longshort Fund
Performance |
| Timeline |
| Moderately Aggressive |
| Astor Long/short |
Moderately Aggressive and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moderately Aggressive and Astor Long/short
The main advantage of trading using opposite Moderately Aggressive and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moderately Aggressive 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.| Moderately Aggressive vs. Queens Road Small | Moderately Aggressive vs. Pace Smallmedium Value | Moderately Aggressive vs. Vanguard Small Cap Value | Moderately Aggressive vs. Fidelity Small Cap |
| Astor Long/short vs. Fidelity Managed Retirement | Astor Long/short vs. Pro Blend Moderate Term | Astor Long/short vs. Moderately Aggressive Balanced | Astor Long/short vs. Franklin Lifesmart Retirement |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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