Correlation Between Astor Star and Ab Global
Can any of the company-specific risk be diversified away by investing in both Astor Star and Ab Global 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 Star and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Star Fund and Ab Global E, you can compare the effects of market volatilities on Astor Star and Ab Global 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 Star with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Star and Ab Global.
Diversification Opportunities for Astor Star and Ab Global
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Astor and GCECX is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Astor Star Fund and Ab Global E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global E and Astor Star 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 Star Fund are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global E has no effect on the direction of Astor Star i.e., Astor Star and Ab Global go up and down completely randomly.
Pair Corralation between Astor Star and Ab Global
Assuming the 90 days horizon Astor Star is expected to generate 1.19 times less return on investment than Ab Global. But when comparing it to its historical volatility, Astor Star Fund is 1.75 times less risky than Ab Global. It trades about 0.22 of its potential returns per unit of risk. Ab Global E is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,744 in Ab Global E on May 29, 2025 and sell it today you would earn a total of 109.00 from holding Ab Global E or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Astor Star Fund vs. Ab Global E
Performance |
| Timeline |
| Astor Star Fund |
| Ab Global E |
Astor Star and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Star and Ab Global
The main advantage of trading using opposite Astor Star and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Star position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Astor Star vs. Astor Star Fund | Astor Star vs. Astor Star Fund | Astor Star vs. Astor Longshort Fund | Astor Star vs. Nasdaq 100 Fund Class |
| Ab Global vs. Tiaa Cref Small Cap Equity | Ab Global vs. Elfun Diversified Fund | Ab Global vs. Delaware Limited Term Diversified | Ab Global vs. Putnam Diversified Income |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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