Correlation Between Aqr Diversified and Nuveen Kansas
Can any of the company-specific risk be diversified away by investing in both Aqr Diversified and Nuveen Kansas 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 Aqr Diversified and Nuveen Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Diversified Arbitrage and Nuveen Kansas Municipal, you can compare the effects of market volatilities on Aqr Diversified and Nuveen Kansas 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 Aqr Diversified with a short position of Nuveen Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Diversified and Nuveen Kansas.
Diversification Opportunities for Aqr Diversified and Nuveen Kansas
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AQR and Nuveen is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Diversified Arbitrage and Nuveen Kansas Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Kansas Municipal and Aqr Diversified 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 Aqr Diversified Arbitrage are associated (or correlated) with Nuveen Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Kansas Municipal has no effect on the direction of Aqr Diversified i.e., Aqr Diversified and Nuveen Kansas go up and down completely randomly.
Pair Corralation between Aqr Diversified and Nuveen Kansas
Assuming the 90 days horizon Aqr Diversified Arbitrage is expected to generate 1.01 times more return on investment than Nuveen Kansas. However, Aqr Diversified is 1.01 times more volatile than Nuveen Kansas Municipal. It trades about 0.06 of its potential returns per unit of risk. Nuveen Kansas Municipal is currently generating about 0.05 per unit of risk. If you would invest 1,138 in Aqr Diversified Arbitrage on August 26, 2024 and sell it today you would earn a total of 81.00 from holding Aqr Diversified Arbitrage or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Diversified Arbitrage vs. Nuveen Kansas Municipal
Performance |
| Timeline |
| Aqr Diversified Arbitrage |
| Nuveen Kansas Municipal |
Aqr Diversified and Nuveen Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Diversified and Nuveen Kansas
The main advantage of trading using opposite Aqr Diversified and Nuveen Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Diversified position performs unexpectedly, Nuveen Kansas 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 Nuveen Kansas will offset losses from the drop in Nuveen Kansas' long position.| Aqr Diversified vs. Aqr Large Cap | Aqr Diversified vs. Aqr Large Cap | Aqr Diversified vs. Aqr International Defensive | Aqr Diversified vs. Aqr International Defensive |
| Nuveen Kansas vs. Delaware Limited Term Diversified | Nuveen Kansas vs. Lord Abbett Diversified | Nuveen Kansas vs. Aqr Diversified Arbitrage | Nuveen Kansas vs. Huber Capital Diversified |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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