Correlation Between Astor Longshort and Voya International

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

Diversification Opportunities for Astor Longshort and Voya International

-0.41

Correlation Coefficient

Astor Longshort  Voya International

Very good diversification

The 3 months correlation between Astor and Voya is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Voya International Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya International Index 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 Voya International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya International Index has no effect on the direction of Astor Longshort i.e., Astor Longshort and Voya International go up and down completely randomly.

Pair Corralation between Astor Longshort and Voya International

If you would invest  1,093  in Voya International Index on October 3, 2024 and sell it today you would earn a total of  0.00  from holding Voya International Index or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.55%
Values	Daily Returns

Astor Longshort Fund  vs.  Voya International Index

Astor Longshort

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Astor Longshort Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Voya International Index

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voya International Index has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Voya International 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 Voya International

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

The idea behind Astor Longshort Fund and Voya International Index 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.