Correlation Between Astor Long/short and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Goldman Sachs 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 Astor Long/short and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Goldman Sachs Dynamic, you can compare the effects of market volatilities on Astor Long/short and Goldman Sachs 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 Astor Long/short with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Goldman Sachs.
Diversification Opportunities for Astor Long/short and Goldman Sachs
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astor and Goldman is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Goldman Sachs Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Dynamic and Astor Long/short 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 Astor Longshort Fund are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Dynamic has no effect on the direction of Astor Long/short i.e., Astor Long/short and Goldman Sachs go up and down completely randomly.
Pair Corralation between Astor Long/short and Goldman Sachs
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 2.48 times more return on investment than Goldman Sachs. However, Astor Long/short is 2.48 times more volatile than Goldman Sachs Dynamic. It trades about 0.29 of its potential returns per unit of risk. Goldman Sachs Dynamic is currently generating about 0.05 per unit of risk. If you would invest 1,230 in Astor Longshort Fund on April 24, 2025 and sell it today you would earn a total of 87.00 from holding Astor Longshort Fund or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Goldman Sachs Dynamic
Performance |
| Timeline |
| Astor Long/short |
| Goldman Sachs Dynamic |
Astor Long/short and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Goldman Sachs
The main advantage of trading using opposite Astor Long/short and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Astor Long/short vs. Blackrock Global Longshort | Astor Long/short vs. Western Asset Short | Astor Long/short vs. Ab Select Longshort | Astor Long/short vs. Aqr Long Short Equity |
| Goldman Sachs vs. Gmo Resources | Goldman Sachs vs. Franklin Natural Resources | Goldman Sachs vs. Icon Natural Resources | Goldman Sachs vs. Energy Basic Materials |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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