Correlation Between Aqr Large and Hartford Municipal
Can any of the company-specific risk be diversified away by investing in both Aqr Large and Hartford Municipal 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 Hartford Municipal 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 The Hartford Municipal, you can compare the effects of market volatilities on Aqr Large and Hartford Municipal 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 Hartford Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Hartford Municipal.
Diversification Opportunities for Aqr Large and Hartford Municipal
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aqr and Hartford is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and The Hartford Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Municipal 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 Hartford Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Municipal has no effect on the direction of Aqr Large i.e., Aqr Large and Hartford Municipal go up and down completely randomly.
Pair Corralation between Aqr Large and Hartford Municipal
Assuming the 90 days horizon Aqr Large Cap is expected to generate 6.39 times more return on investment than Hartford Municipal. However, Aqr Large is 6.39 times more volatile than The Hartford Municipal. It trades about 0.11 of its potential returns per unit of risk. The Hartford Municipal is currently generating about 0.14 per unit of risk. If you would invest 2,219 in Aqr Large Cap on September 1, 2024 and sell it today you would earn a total of 362.00 from holding Aqr Large Cap or generate 16.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Aqr Large Cap vs. The Hartford Municipal
Performance |
| Timeline |
| Aqr Large Cap |
| The Hartford Municipal |
Aqr Large and Hartford Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and Hartford Municipal
The main advantage of trading using opposite Aqr Large and Hartford Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large position performs unexpectedly, Hartford Municipal 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 Hartford Municipal will offset losses from the drop in Hartford Municipal's long position.| Aqr Large vs. Aqr Large Cap | Aqr Large vs. Aqr International Defensive | Aqr Large vs. Aqr International Defensive | Aqr Large vs. Aqr Long Short Equity |
| Hartford Municipal vs. The Hartford Growth | Hartford Municipal vs. The Hartford Growth | Hartford Municipal vs. The Hartford Growth | Hartford Municipal vs. The Hartford Growth |
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 CEOs Directory module to screen CEOs from public companies around the world.
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