Correlation Between Astor Longshort and Tiaa Cref

Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Tiaa Cref 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 Longshort and Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Astor Longshort Fund and Tiaa Cref Inflation Link, you can compare the effects of market volatilities on Astor Longshort and Tiaa Cref 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 Longshort with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Tiaa Cref.

Diversification Opportunities for Astor Longshort and Tiaa Cref

-0.56

Correlation Coefficient

Astor Longshort  Tiaa Cref

Excellent diversification

The 3 months correlation between Astor and Tiaa is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Tiaa Cref Inflation Link in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Inflation and Astor Longshort 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 Longshort Fund are associated (or correlated) with Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Inflation has no effect on the direction of Astor Longshort i.e., Astor Longshort and Tiaa Cref go up and down completely randomly.

Pair Corralation between Astor Longshort and Tiaa Cref

Assuming the 90 days horizon Astor Longshort Fund is expected to generate 1.25 times more return on investment than Tiaa Cref. However, Astor Longshort is 1.25 times more volatile than Tiaa Cref Inflation Link. It trades about 0.13 of its potential returns per unit of risk. Tiaa Cref Inflation Link is currently generating about 0.06 per unit of risk. If you would invest  1,147  in Astor Longshort Fund on September 12, 2024 and sell it today you would earn a total of  280.00  from holding Astor Longshort Fund or generate 24.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Astor Longshort Fund  vs.  Tiaa Cref Inflation Link

Astor Longshort

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astor Longshort Fund are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Astor Longshort is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tiaa Cref Inflation

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tiaa Cref Inflation Link has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical indicators, Tiaa Cref 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 Longshort and Tiaa Cref

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

The idea behind Astor Longshort Fund and Tiaa Cref Inflation Link 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.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.