Correlation Between Astor Star and Technology Fund
Can any of the company-specific risk be diversified away by investing in both Astor Star and Technology Fund 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 Technology Fund 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 Technology Fund Class, you can compare the effects of market volatilities on Astor Star and Technology Fund 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 Technology Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Star and Technology Fund.
Diversification Opportunities for Astor Star and Technology Fund
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Technology is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Astor Star Fund and Technology Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technology Fund Class 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 Technology Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technology Fund Class has no effect on the direction of Astor Star i.e., Astor Star and Technology Fund go up and down completely randomly.
Pair Corralation between Astor Star and Technology Fund
Assuming the 90 days horizon Astor Star Fund is expected to generate 0.49 times more return on investment than Technology Fund. However, Astor Star Fund is 2.04 times less risky than Technology Fund. It trades about -0.08 of its potential returns per unit of risk. Technology Fund Class is currently generating about -0.08 per unit of risk. If you would invest 1,595 in Astor Star Fund on December 23, 2024 and sell it today you would lose (65.00) from holding Astor Star Fund or give up 4.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Astor Star Fund vs. Technology Fund Class
Performance |
Timeline |
Astor Star Fund |
Technology Fund Class |
Astor Star and Technology Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Astor Star and Technology Fund
The main advantage of trading using opposite Astor Star and Technology Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Star position performs unexpectedly, Technology Fund 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 Technology Fund will offset losses from the drop in Technology Fund's long position.Astor Star vs. Astor Star Fund | Astor Star vs. Astor Star Fund | Astor Star vs. Astor Longshort Fund | Astor Star vs. Nasdaq 100 Fund Class |
Technology Fund vs. Putnam Global Health | Technology Fund vs. Blackrock Health Sciences | Technology Fund vs. Baillie Gifford Health | Technology Fund vs. Deutsche Health And |
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.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |