Correlation Between Astor Long/short and Inverse Nasdaq-100
Can any of the company-specific risk be diversified away by investing in both Astor Long/short and Inverse Nasdaq-100 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 Inverse Nasdaq-100 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 Inverse Nasdaq 100 Strategy, you can compare the effects of market volatilities on Astor Long/short and Inverse Nasdaq-100 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 Inverse Nasdaq-100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Inverse Nasdaq-100.
Diversification Opportunities for Astor Long/short and Inverse Nasdaq-100
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astor and Inverse is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Inverse Nasdaq 100 Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse Nasdaq 100 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 Inverse Nasdaq-100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse Nasdaq 100 has no effect on the direction of Astor Long/short i.e., Astor Long/short and Inverse Nasdaq-100 go up and down completely randomly.
Pair Corralation between Astor Long/short and Inverse Nasdaq-100
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.43 times more return on investment than Inverse Nasdaq-100. However, Astor Longshort Fund is 2.34 times less risky than Inverse Nasdaq-100. It trades about 0.23 of its potential returns per unit of risk. Inverse Nasdaq 100 Strategy is currently generating about -0.14 per unit of risk. If you would invest 1,279 in Astor Longshort Fund on June 9, 2025 and sell it today you would earn a total of 61.00 from holding Astor Longshort Fund or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Inverse Nasdaq 100 Strategy
Performance |
| Timeline |
| Astor Long/short |
| Inverse Nasdaq 100 |
Astor Long/short and Inverse Nasdaq-100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Inverse Nasdaq-100
The main advantage of trading using opposite Astor Long/short and Inverse Nasdaq-100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short position performs unexpectedly, Inverse Nasdaq-100 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 Inverse Nasdaq-100 will offset losses from the drop in Inverse Nasdaq-100's long position.| Astor Long/short vs. Astor Star Fund | Astor Long/short vs. Astor Star Fund | Astor Long/short vs. Astor Longshort Fund | Astor Long/short vs. Astor Longshort Fund |
| Inverse Nasdaq-100 vs. Pace Municipal Fixed | Inverse Nasdaq-100 vs. Barings High Yield | Inverse Nasdaq-100 vs. Artisan High Income | Inverse Nasdaq-100 vs. Morningstar Defensive Bond |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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