Correlation Between Matson Money and Astor Star
Can any of the company-specific risk be diversified away by investing in both Matson Money 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 Matson Money and Astor Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matson Money Equity and Astor Star Fund, you can compare the effects of market volatilities on Matson Money 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 Matson Money with a short position of Astor Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matson Money and Astor Star.
Diversification Opportunities for Matson Money and Astor Star
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Matson and Astor is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Matson Money Equity 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 Matson Money 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 Matson Money Equity 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 Matson Money i.e., Matson Money and Astor Star go up and down completely randomly.
Pair Corralation between Matson Money and Astor Star
Assuming the 90 days horizon Matson Money Equity is expected to generate 2.56 times more return on investment than Astor Star. However, Matson Money is 2.56 times more volatile than Astor Star Fund. It trades about 0.09 of its potential returns per unit of risk. Astor Star Fund is currently generating about 0.17 per unit of risk. If you would invest 3,297 in Matson Money Equity on July 3, 2025 and sell it today you would earn a total of 149.00 from holding Matson Money Equity or generate 4.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Matson Money Equity vs. Astor Star Fund
Performance |
Timeline |
Matson Money Equity |
Astor Star Fund |
Matson Money and Astor Star Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Matson Money and Astor Star
The main advantage of trading using opposite Matson Money and Astor Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matson Money 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.Matson Money vs. Health Care Ultrasector | Matson Money vs. Putnam Global Health | Matson Money vs. Schwab Health Care | Matson Money vs. The Hartford Healthcare |
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 |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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