Correlation Between Pgim Conservative and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Pgim Conservative 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 Pgim Conservative 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 Pgim Conservative Retirement and Astor Longshort Fund, you can compare the effects of market volatilities on Pgim Conservative 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 Pgim Conservative with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Conservative and Astor Long/short.
Diversification Opportunities for Pgim Conservative and Astor Long/short
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pgim and Astor is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Conservative Retirement 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 Pgim Conservative 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 Pgim Conservative Retirement 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 Pgim Conservative i.e., Pgim Conservative and Astor Long/short go up and down completely randomly.
Pair Corralation between Pgim Conservative and Astor Long/short
Assuming the 90 days horizon Pgim Conservative is expected to generate 1.48 times less return on investment than Astor Long/short. But when comparing it to its historical volatility, Pgim Conservative Retirement is 1.4 times less risky than Astor Long/short. It trades about 0.26 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,234 in Astor Longshort Fund on April 25, 2025 and sell it today you would earn a total of 83.00 from holding Astor Longshort Fund or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pgim Conservative Retirement vs. Astor Longshort Fund
Performance |
| Timeline |
| Pgim Conservative |
| Astor Long/short |
Pgim Conservative and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pgim Conservative and Astor Long/short
The main advantage of trading using opposite Pgim Conservative and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Conservative 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.| Pgim Conservative vs. Buffalo High Yield | Pgim Conservative vs. City National Rochdale | Pgim Conservative vs. Strategic Advisers Income | Pgim Conservative vs. Six Circles Credit |
| 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 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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