Correlation Between Aqr Large and Sit Mid
Can any of the company-specific risk be diversified away by investing in both Aqr Large and Sit Mid 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 Sit Mid 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 Sit Mid Cap, you can compare the effects of market volatilities on Aqr Large and Sit Mid 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 Sit Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Sit Mid.
Diversification Opportunities for Aqr Large and Sit Mid
Almost no diversification
The 3 months correlation between Aqr and Sit is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and Sit Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Mid Cap 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 Sit Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Mid Cap has no effect on the direction of Aqr Large i.e., Aqr Large and Sit Mid go up and down completely randomly.
Pair Corralation between Aqr Large and Sit Mid
Assuming the 90 days horizon Aqr Large Cap is expected to generate 0.99 times more return on investment than Sit Mid. However, Aqr Large Cap is 1.01 times less risky than Sit Mid. It trades about 0.38 of its potential returns per unit of risk. Sit Mid Cap is currently generating about 0.3 per unit of risk. If you would invest 2,395 in Aqr Large Cap on September 1, 2024 and sell it today you would earn a total of 186.00 from holding Aqr Large Cap or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aqr Large Cap vs. Sit Mid Cap
Performance |
| Timeline |
| Aqr Large Cap |
| Sit Mid Cap |
Aqr Large and Sit Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and Sit Mid
The main advantage of trading using opposite Aqr Large and Sit Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large position performs unexpectedly, Sit Mid 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 Sit Mid will offset losses from the drop in Sit Mid'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 |
| Sit Mid vs. Icon Information Technology | Sit Mid vs. Pgim Jennison Technology | Sit Mid vs. Global Technology Portfolio | Sit Mid vs. Blackrock Science Technology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |