Correlation Between Astonherndon Large and Bond Fund

Can any of the company-specific risk be diversified away by investing in both Astonherndon Large and Bond 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 Astonherndon Large and Bond Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Astonherndon Large Cap and Bond Fund Class, you can compare the effects of market volatilities on Astonherndon Large and Bond 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 Astonherndon Large with a short position of Bond Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astonherndon Large and Bond Fund.

Diversification Opportunities for Astonherndon Large and Bond Fund

0.56

Correlation Coefficient

Astonherndon Large  Bond Fund

Very weak diversification

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

Pair Corralation between Astonherndon Large and Bond Fund

Assuming the 90 days horizon Astonherndon Large Cap is expected to generate 1.95 times more return on investment than Bond Fund. However, Astonherndon Large is 1.95 times more volatile than Bond Fund Class. It trades about 0.29 of its potential returns per unit of risk. Bond Fund Class is currently generating about 0.08 per unit of risk. If you would invest  1,104  in Astonherndon Large Cap on May 6, 2025 and sell it today you would earn a total of  127.00  from holding Astonherndon Large Cap or generate 11.5% return on investment over 90 days.

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

Astonherndon Large Cap  vs.  Bond Fund Class

Astonherndon Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astonherndon Large Cap are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Astonherndon Large may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Bond Fund Class

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bond Fund Class are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Bond Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Astonherndon Large and Bond Fund

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

The idea behind Astonherndon Large Cap and Bond Fund Class 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.