Correlation Between Astor Star and Astor Macro

Can any of the company-specific risk be diversified away by investing in both Astor Star and Astor Macro 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 Astor Macro 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 Astor Macro Alternative, you can compare the effects of market volatilities on Astor Star and Astor Macro 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 Astor Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Star and Astor Macro.

Diversification Opportunities for Astor Star and Astor Macro

0.0

Correlation Coefficient

Astor Star  Astor Macro

Pay attention - limited upside

The 3 months correlation between Astor and Astor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astor Star Fund and Astor Macro Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Macro Alternative 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 Astor Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Macro Alternative has no effect on the direction of Astor Star i.e., Astor Star and Astor Macro go up and down completely randomly.

Pair Corralation between Astor Star and Astor Macro

If you would invest  1,524  in Astor Star Fund on September 15, 2024 and sell it today you would earn a total of  122.00  from holding Astor Star Fund or generate 8.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Astor Star Fund  vs.  Astor Macro Alternative

Astor Star Fund

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astor Star Fund are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Astor Star may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Astor Macro Alternative

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Astor Macro Alternative has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Astor Macro is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Astor Star and Astor Macro

The main advantage of trading using opposite Astor Star and Astor Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Star position performs unexpectedly, Astor Macro 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 Macro will offset losses from the drop in Astor Macro's long position.

The idea behind Astor Star Fund and Astor Macro Alternative pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.