Correlation Between College Retirement and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both College Retirement 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 College Retirement 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 College Retirement Equities and Astor Longshort Fund, you can compare the effects of market volatilities on College Retirement 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 College Retirement with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of College Retirement and Astor Long/short.
Diversification Opportunities for College Retirement and Astor Long/short
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between College and Astor is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding College Retirement Equities 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 College Retirement 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 College Retirement Equities 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 College Retirement i.e., College Retirement and Astor Long/short go up and down completely randomly.
Pair Corralation between College Retirement and Astor Long/short
Assuming the 90 days trading horizon College Retirement Equities is expected to generate 2.04 times more return on investment than Astor Long/short. However, College Retirement is 2.04 times more volatile than Astor Longshort Fund. It trades about 0.12 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.18 per unit of risk. If you would invest 38,482 in College Retirement Equities on August 15, 2025 and sell it today you would earn a total of 2,121 from holding College Retirement Equities or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
College Retirement Equities vs. Astor Longshort Fund
Performance |
| Timeline |
| College Retirement |
| Astor Long/short |
College Retirement and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with College Retirement and Astor Long/short
The main advantage of trading using opposite College Retirement and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if College Retirement 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.| College Retirement vs. Ab Small Cap | College Retirement vs. Aqr Small Cap | College Retirement vs. Glg Intl Small | College Retirement vs. Nuveen Small Cap |
| Astor Long/short vs. Fidelity California Municipal | Astor Long/short vs. Dreyfus Municipal Bond | Astor Long/short vs. T Rowe Price | Astor Long/short vs. Blackrock Pa Muni |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |