Correlation Between Astor Longshort and Harbor Diversified

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

Diversification Opportunities for Astor Longshort and Harbor Diversified

0.73

Correlation Coefficient

Astor Longshort  Harbor Diversified

Poor diversification

The 3 months correlation between Astor and Harbor is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Harbor Diversified Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Diversified 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 Harbor Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Diversified has no effect on the direction of Astor Longshort i.e., Astor Longshort and Harbor Diversified go up and down completely randomly.

Pair Corralation between Astor Longshort and Harbor Diversified

Assuming the 90 days horizon Astor Longshort is expected to generate 1.47 times less return on investment than Harbor Diversified. But when comparing it to its historical volatility, Astor Longshort Fund is 1.59 times less risky than Harbor Diversified. It trades about 0.18 of its potential returns per unit of risk. Harbor Diversified International is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1,320  in Harbor Diversified International on May 5, 2025 and sell it today you would earn a total of  92.00  from holding Harbor Diversified International or generate 6.97% return on investment over 90 days.

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

Astor Longshort Fund  vs.  Harbor Diversified Internation

Astor Longshort

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Astor Longshort Fund are ranked lower than 14 (%) 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.

Harbor Diversified

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Harbor Diversified International are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Harbor Diversified may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Astor Longshort and Harbor Diversified

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

The idea behind Astor Longshort Fund and Harbor Diversified International 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.