Correlation Between Nasdaq-100 Index and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100 Index and Astor Longshort 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 Nasdaq-100 Index and Astor Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Index Fund and Astor Longshort Fund, you can compare the effects of market volatilities on Nasdaq-100 Index and Astor Longshort 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 Nasdaq-100 Index with a short position of Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100 Index and Astor Longshort.
Diversification Opportunities for Nasdaq-100 Index and Astor Longshort
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nasdaq-100 and Astor is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort and Nasdaq-100 Index 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 Nasdaq 100 Index Fund are associated (or correlated) with Astor Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Longshort has no effect on the direction of Nasdaq-100 Index i.e., Nasdaq-100 Index and Astor Longshort go up and down completely randomly.
Pair Corralation between Nasdaq-100 Index and Astor Longshort
Assuming the 90 days horizon Nasdaq 100 Index Fund is expected to generate 2.26 times more return on investment than Astor Longshort. However, Nasdaq-100 Index is 2.26 times more volatile than Astor Longshort Fund. It trades about 0.23 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.26 per unit of risk. If you would invest 5,261 in Nasdaq 100 Index Fund on May 30, 2025 and sell it today you would earn a total of 590.00 from holding Nasdaq 100 Index Fund or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. Astor Longshort Fund
Performance |
| Timeline |
| Nasdaq 100 Index |
| Astor Longshort |
Nasdaq-100 Index and Astor Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100 Index and Astor Longshort
The main advantage of trading using opposite Nasdaq-100 Index and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100 Index position performs unexpectedly, Astor Longshort 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 Longshort will offset losses from the drop in Astor Longshort's long position.| Nasdaq-100 Index vs. Simt Real Estate | Nasdaq-100 Index vs. Rreef Property Trust | Nasdaq-100 Index vs. Vy Clarion Real | Nasdaq-100 Index vs. Amg Managers Centersquare |
| Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Longshort Fund | Astor Longshort vs. Astor Longshort Fund |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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