Correlation Between Astor Longshort and The Short-term
Can any of the company-specific risk be diversified away by investing in both Astor Longshort and The Short-term 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 Longshort and The Short-term 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 The Short Term Municipal, you can compare the effects of market volatilities on Astor Longshort and The Short-term 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 Longshort with a short position of The Short-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and The Short-term.
Diversification Opportunities for Astor Longshort and The Short-term
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and The is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and The Short Term Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Short-term and Astor Longshort 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 The Short-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Short-term has no effect on the direction of Astor Longshort i.e., Astor Longshort and The Short-term go up and down completely randomly.
Pair Corralation between Astor Longshort and The Short-term
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 5.0 times more return on investment than The Short-term. However, Astor Longshort is 5.0 times more volatile than The Short Term Municipal. It trades about 0.25 of its potential returns per unit of risk. The Short Term Municipal is currently generating about 0.3 per unit of risk. If you would invest 1,266 in Astor Longshort Fund on May 27, 2025 and sell it today you would earn a total of 67.00 from holding Astor Longshort Fund or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. The Short Term Municipal
Performance |
| Timeline |
| Astor Longshort |
| The Short-term |
Astor Longshort and The Short-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and The Short-term
The main advantage of trading using opposite Astor Longshort and The Short-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, The Short-term 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 The Short-term will offset losses from the drop in The Short-term's long position.| Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Longshort Fund | Astor Longshort vs. Astor Longshort Fund |
| The Short-term vs. Templeton Global Balanced | The Short-term vs. Dws Global Macro | The Short-term vs. Alliancebernstein Global Highome | The Short-term vs. Rbc Global Equity |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |