Correlation Between Growth Income and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Growth Income 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 Growth Income 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 Growth Income Fund and Astor Longshort Fund, you can compare the effects of market volatilities on Growth Income 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 Growth Income with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Income and Astor Long/short.
Diversification Opportunities for Growth Income and Astor Long/short
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Growth and Astor is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Growth Income Fund 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 Growth Income 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 Growth Income Fund 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 Growth Income i.e., Growth Income and Astor Long/short go up and down completely randomly.
Pair Corralation between Growth Income and Astor Long/short
Assuming the 90 days horizon Growth Income Fund is expected to generate 2.05 times more return on investment than Astor Long/short. However, Growth Income is 2.05 times more volatile than Astor Longshort Fund. It trades about 0.19 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.24 per unit of risk. If you would invest 3,348 in Growth Income Fund on August 27, 2024 and sell it today you would earn a total of 118.00 from holding Growth Income Fund or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Income Fund vs. Astor Longshort Fund
Performance |
| Timeline |
| Growth Income |
| Astor Long/short |
Growth Income and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Income and Astor Long/short
The main advantage of trading using opposite Growth Income and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Income 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.| Growth Income vs. Counterpoint Tactical Municipal | Growth Income vs. Baird Strategic Municipal | Growth Income vs. Ishares Municipal Bond | Growth Income vs. Bbh Intermediate Municipal |
| Astor Long/short vs. Rbc Short Duration | Astor Long/short vs. Angel Oak Ultrashort | Astor Long/short vs. Quantitative Longshort Equity | Astor Long/short vs. Old Westbury Short Term |
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 Stocks Directory module to find actively traded stocks across global markets.
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