Correlation Between Seafarer Overseas and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Seafarer Overseas 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 Seafarer Overseas 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 Seafarer Overseas Growth and Astor Longshort Fund, you can compare the effects of market volatilities on Seafarer Overseas 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 Seafarer Overseas with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seafarer Overseas and Astor Long/short.
Diversification Opportunities for Seafarer Overseas and Astor Long/short
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Seafarer and Astor is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Seafarer Overseas Growth 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 Seafarer Overseas 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 Seafarer Overseas Growth 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 Seafarer Overseas i.e., Seafarer Overseas and Astor Long/short go up and down completely randomly.
Pair Corralation between Seafarer Overseas and Astor Long/short
Assuming the 90 days horizon Seafarer Overseas Growth is expected to generate 2.09 times more return on investment than Astor Long/short. However, Seafarer Overseas is 2.09 times more volatile than Astor Longshort Fund. It trades about 0.22 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.34 per unit of risk. If you would invest 1,288 in Seafarer Overseas Growth on April 2, 2025 and sell it today you would earn a total of 37.00 from holding Seafarer Overseas Growth or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seafarer Overseas Growth vs. Astor Longshort Fund
Performance |
| Timeline |
| Seafarer Overseas Growth |
| Astor Long/short |
Seafarer Overseas and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seafarer Overseas and Astor Long/short
The main advantage of trading using opposite Seafarer Overseas and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seafarer Overseas 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.| Seafarer Overseas vs. Touchstone Ultra Short | Seafarer Overseas vs. Jhancock Short Duration | Seafarer Overseas vs. Federated Municipal Ultrashort | Seafarer Overseas vs. Short Intermediate Bond Fund |
| Astor Long/short vs. Calvert International Equity | Astor Long/short vs. Morningstar International Equity | Astor Long/short vs. Ab Select Equity | Astor Long/short vs. Pnc International 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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