Correlation Between Aqr Large and Cohen Steers

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Can any of the company-specific risk be diversified away by investing in both Aqr Large and Cohen Steers 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 Cohen Steers 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 Cohen Steers Mlp, you can compare the effects of market volatilities on Aqr Large and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Cohen Steers.

Diversification Opportunities for Aqr Large and Cohen Steers

AqrCohenDiversified AwayAqrCohenDiversified Away100%
0.49
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Aqr and Cohen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and Cohen Steers Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Mlp 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Mlp has no effect on the direction of Aqr Large i.e., Aqr Large and Cohen Steers go up and down completely randomly.

Pair Corralation between Aqr Large and Cohen Steers

Assuming the 90 days horizon Aqr Large Cap is expected to generate 0.87 times more return on investment than Cohen Steers. However, Aqr Large Cap is 1.14 times less risky than Cohen Steers. It trades about 0.08 of its potential returns per unit of risk. Cohen Steers Mlp is currently generating about -0.12 per unit of risk. If you would invest  2,289  in Aqr Large Cap on November 21, 2024 and sell it today you would earn a total of  34.00  from holding Aqr Large Cap or generate 1.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.24%
ValuesDaily Returns

Aqr Large Cap  vs.  Cohen Steers Mlp

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-505
JavaScript chart by amCharts 3.21.15AMONX MLORX
       Timeline  
Aqr Large Cap 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Aqr Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb21.52222.52323.52424.52525.526
Cohen Steers Mlp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Cohen Steers Mlp has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Cohen Steers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb8.28.38.48.58.68.78.88.99

Aqr Large and Cohen Steers Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.01-2.25-1.5-0.740.00.71.42.112.82 0.10.20.30.4
JavaScript chart by amCharts 3.21.15AMONX MLORX
       Returns  

Pair Trading with Aqr Large and Cohen Steers

The main advantage of trading using opposite Aqr Large and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.
The idea behind Aqr Large Cap and Cohen Steers Mlp 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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