Correlation Between Science Technology and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Science Technology 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 Science Technology 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 Science Technology Fund and Astor Longshort Fund, you can compare the effects of market volatilities on Science Technology 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 Science Technology with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Science Technology and Astor Long/short.
Diversification Opportunities for Science Technology and Astor Long/short
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Science and Astor is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Science Technology Fund 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 Science Technology 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 Science Technology Fund 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 Science Technology i.e., Science Technology and Astor Long/short go up and down completely randomly.
Pair Corralation between Science Technology and Astor Long/short
Assuming the 90 days horizon Science Technology Fund is expected to generate 2.88 times more return on investment than Astor Long/short. However, Science Technology is 2.88 times more volatile than Astor Longshort Fund. It trades about 0.04 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.04 per unit of risk. If you would invest 2,510 in Science Technology Fund on March 22, 2025 and sell it today you would earn a total of 347.00 from holding Science Technology Fund or generate 13.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Science Technology Fund vs. Astor Longshort Fund
Performance |
| Timeline |
| Science Technology |
| Astor Long/short |
Science Technology and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Science Technology and Astor Long/short
The main advantage of trading using opposite Science Technology and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Science Technology 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.| Science Technology vs. Amg River Road | Science Technology vs. Hennessy Nerstone Mid | Science Technology vs. Omni Small Cap Value | Science Technology vs. Palm Valley Capital |
| Astor Long/short vs. Fidelity Advisor Health | Astor Long/short vs. Live Oak Health | Astor Long/short vs. T Rowe Price | Astor Long/short vs. Vanguard Health Care |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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