Correlation Between Aqr Large and Voya Multi-manager
Can any of the company-specific risk be diversified away by investing in both Aqr Large and Voya Multi-manager 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 Voya Multi-manager 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 Voya Multi Manager Mid, you can compare the effects of market volatilities on Aqr Large and Voya Multi-manager 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 Voya Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Voya Multi-manager.
Diversification Opportunities for Aqr Large and Voya Multi-manager
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aqr and Voya is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and Voya Multi Manager Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager 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 Voya Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Aqr Large i.e., Aqr Large and Voya Multi-manager go up and down completely randomly.
Pair Corralation between Aqr Large and Voya Multi-manager
Assuming the 90 days horizon Aqr Large Cap is expected to generate 1.18 times more return on investment than Voya Multi-manager. However, Aqr Large is 1.18 times more volatile than Voya Multi Manager Mid. It trades about 0.24 of its potential returns per unit of risk. Voya Multi Manager Mid is currently generating about 0.26 per unit of risk. If you would invest 2,441 in Aqr Large Cap on August 31, 2024 and sell it today you would earn a total of 140.00 from holding Aqr Large Cap or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aqr Large Cap vs. Voya Multi Manager Mid
Performance |
| Timeline |
| Aqr Large Cap |
| Voya Multi Manager |
Aqr Large and Voya Multi-manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and Voya Multi-manager
The main advantage of trading using opposite Aqr Large and Voya Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large position performs unexpectedly, Voya Multi-manager 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 Voya Multi-manager will offset losses from the drop in Voya Multi-manager's long position.| Aqr Large vs. Applied Finance Explorer | Aqr Large vs. Amg River Road | Aqr Large vs. Fpa Queens Road | Aqr Large vs. American Century Etf |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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