Correlation Between Aqr Large and Day Hagan
Can any of the company-specific risk be diversified away by investing in both Aqr Large and Day Hagan 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 Large and Day Hagan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Large Cap and Day Hagan Tactical, you can compare the effects of market volatilities on Aqr Large and Day Hagan 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 Large with a short position of Day Hagan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Day Hagan.
Diversification Opportunities for Aqr Large and Day Hagan
Modest diversification
The 3 months correlation between Aqr and Day is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and Day Hagan Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Day Hagan Tactical and Aqr Large 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 Large Cap are associated (or correlated) with Day Hagan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Day Hagan Tactical has no effect on the direction of Aqr Large i.e., Aqr Large and Day Hagan go up and down completely randomly.
Pair Corralation between Aqr Large and Day Hagan
Assuming the 90 days horizon Aqr Large Cap is expected to generate 1.3 times more return on investment than Day Hagan. However, Aqr Large is 1.3 times more volatile than Day Hagan Tactical. It trades about 0.07 of its potential returns per unit of risk. Day Hagan Tactical is currently generating about 0.07 per unit of risk. If you would invest 1,841 in Aqr Large Cap on September 12, 2024 and sell it today you would earn a total of 696.00 from holding Aqr Large Cap or generate 37.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 29.35% |
| Values | Daily Returns |
Aqr Large Cap vs. Day Hagan Tactical
Performance |
| Timeline |
| Aqr Large Cap |
| Day Hagan Tactical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aqr Large and Day Hagan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and Day Hagan
The main advantage of trading using opposite Aqr Large and Day Hagan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large position performs unexpectedly, Day Hagan 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 Day Hagan will offset losses from the drop in Day Hagan's long position.| Aqr Large vs. The Gabelli Healthcare | Aqr Large vs. Eventide Healthcare Life | Aqr Large vs. Tekla Healthcare Opportunities | Aqr Large vs. Vanguard Health Care |
| Day Hagan vs. Jhancock Disciplined Value | Day Hagan vs. Washington Mutual Investors | Day Hagan vs. Dodge Cox Stock | Day Hagan vs. Aqr Large Cap |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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