Correlation Between Strategic Asset and Astor Longshort

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

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

Diversification Opportunities for Strategic Asset and Astor Longshort

0.98

Correlation Coefficient

Strategic Asset  Astor Longshort

Almost no diversification

The 3 months correlation between Strategic and Astor is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Asset Management and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort and Strategic Asset 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 Asset Management are associated (or correlated) with Astor Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Longshort has no effect on the direction of Strategic Asset i.e., Strategic Asset and Astor Longshort go up and down completely randomly.

Pair Corralation between Strategic Asset and Astor Longshort

Assuming the 90 days horizon Strategic Asset Management is expected to generate 1.44 times more return on investment than Astor Longshort. However, Strategic Asset is 1.44 times more volatile than Astor Longshort Fund. It trades about 0.27 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.27 per unit of risk. If you would invest  1,826  in Strategic Asset Management on May 1, 2025 and sell it today you would earn a total of  175.00  from holding Strategic Asset Management or generate 9.58% return on investment over 90 days.

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

Strategic Asset Management  vs.  Astor Longshort Fund

Strategic Asset Mana

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Strategic Asset Management are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Strategic Asset may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Astor Longshort

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astor Longshort Fund are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Astor Longshort may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Strategic Asset and Astor Longshort

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

The idea behind Strategic Asset Management and Astor Longshort 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.