Correlation Between Prudential High and Astor Active

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

By analyzing existing cross correlation between Prudential High Yield and Astor Active Income, you can compare the effects of market volatilities on Prudential High and Astor Active 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 Prudential High with a short position of Astor Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential High and Astor Active.

Diversification Opportunities for Prudential High and Astor Active

0.0

Correlation Coefficient

Prudential High  Astor Active

Pay attention - limited upside

The 3 months correlation between Prudential and Astor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Prudential High Yield and Astor Active Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Active Income and Prudential High 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 Prudential High Yield are associated (or correlated) with Astor Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Active Income has no effect on the direction of Prudential High i.e., Prudential High and Astor Active go up and down completely randomly.

Pair Corralation between Prudential High and Astor Active

If you would invest  468.00  in Prudential High Yield on May 21, 2025 and sell it today you would earn a total of  18.00  from holding Prudential High Yield or generate 3.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Prudential High Yield  vs.  Astor Active Income

Prudential High Yield

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Prudential High Yield are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Prudential High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Astor Active Income

Risk-Adjusted Performance

Weakest

Over the last 90 days Astor Active Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Astor Active is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Prudential High and Astor Active

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

The idea behind Prudential High Yield and Astor Active Income 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.