Correlation Between Schwab Markettrack and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Schwab Markettrack 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 Schwab Markettrack 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 Schwab Markettrack Growth and Astor Longshort Fund, you can compare the effects of market volatilities on Schwab Markettrack 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 Schwab Markettrack with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schwab Markettrack and Astor Long/short.
Diversification Opportunities for Schwab Markettrack and Astor Long/short
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Schwab and Astor is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Schwab Markettrack Growth 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 Schwab Markettrack 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 Schwab Markettrack Growth 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 Schwab Markettrack i.e., Schwab Markettrack and Astor Long/short go up and down completely randomly.
Pair Corralation between Schwab Markettrack and Astor Long/short
Assuming the 90 days horizon Schwab Markettrack is expected to generate 1.04 times less return on investment than Astor Long/short. In addition to that, Schwab Markettrack is 1.36 times more volatile than Astor Longshort Fund. It trades about 0.33 of its total potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.46 per unit of volatility. If you would invest 1,380 in Astor Longshort Fund on September 5, 2024 and sell it today you would earn a total of 50.00 from holding Astor Longshort Fund or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Schwab Markettrack Growth vs. Astor Longshort Fund
Performance |
| Timeline |
| Schwab Markettrack Growth |
| Astor Long/short |
Schwab Markettrack and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schwab Markettrack and Astor Long/short
The main advantage of trading using opposite Schwab Markettrack and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schwab Markettrack 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.| Schwab Markettrack vs. Astor Longshort Fund | Schwab Markettrack vs. Vanguard Institutional Short Term | Schwab Markettrack vs. Limited Term Tax | Schwab Markettrack vs. Jhancock Short Duration |
| Astor Long/short vs. Ab Government Exchange | Astor Long/short vs. Edward Jones Money | Astor Long/short vs. Hsbc Treasury Money | Astor Long/short vs. American Century 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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