Correlation Between Strategic Allocation: and Astor Star

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

By analyzing existing cross correlation between Strategic Allocation Aggressive and Astor Star Fund, you can compare the effects of market volatilities on Strategic Allocation: and Astor Star 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 Strategic Allocation: with a short position of Astor Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Allocation: and Astor Star.

Diversification Opportunities for Strategic Allocation: and Astor Star

0.62

Correlation Coefficient

Strategic Allocation:  Astor Star

Poor diversification

The 3 months correlation between Strategic and Astor is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Allocation Aggressiv and Astor Star Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Star Fund and Strategic Allocation: 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 Strategic Allocation Aggressive are associated (or correlated) with Astor Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Star Fund has no effect on the direction of Strategic Allocation: i.e., Strategic Allocation: and Astor Star go up and down completely randomly.

Pair Corralation between Strategic Allocation: and Astor Star

Assuming the 90 days horizon Strategic Allocation Aggressive is expected to generate 1.34 times more return on investment than Astor Star. However, Strategic Allocation: is 1.34 times more volatile than Astor Star Fund. It trades about 0.24 of its potential returns per unit of risk. Astor Star Fund is currently generating about 0.25 per unit of risk. If you would invest  806.00  in Strategic Allocation Aggressive on May 3, 2025 and sell it today you would earn a total of  66.00  from holding Strategic Allocation Aggressive or generate 8.19% return on investment over 90 days.

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

Strategic Allocation Aggressiv  vs.  Astor Star Fund

Strategic Allocation:

Risk-Adjusted Performance

Solid

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

Astor Star Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astor Star Fund are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Astor Star may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Strategic Allocation: and Astor Star

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

The idea behind Strategic Allocation Aggressive and Astor Star Fund 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.