Correlation Between Global X and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X 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 Global X NASDAQ and Astor Longshort Fund, you can compare the effects of market volatilities on Global X 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 Global X with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Astor Long/short.
Diversification Opportunities for Global X and Astor Long/short
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and Astor is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Global X NASDAQ 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 Global X 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 Global X NASDAQ 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 Global X i.e., Global X and Astor Long/short go up and down completely randomly.
Pair Corralation between Global X and Astor Long/short
Given the investment horizon of 90 days Global X NASDAQ is expected to generate 0.98 times more return on investment than Astor Long/short. However, Global X NASDAQ is 1.02 times less risky than Astor Long/short. It trades about 0.43 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.21 per unit of risk. If you would invest 1,620 in Global X NASDAQ on March 26, 2025 and sell it today you would earn a total of 41.00 from holding Global X NASDAQ or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X NASDAQ vs. Astor Longshort Fund
Performance |
| Timeline |
| Global X NASDAQ |
| Astor Long/short |
Global X and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Astor Long/short
The main advantage of trading using opposite Global X and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. Global X Russell | Global X vs. JPMorgan Equity Premium | Global X vs. Global X SP | Global X vs. Schwab Dividend Equity |
| Astor Long/short vs. Prudential Emerging Markets | Astor Long/short vs. Seafarer Overseas Growth | Astor Long/short vs. Transamerica Emerging Markets | Astor Long/short vs. Investec Emerging Markets |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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