Correlation Between Aqr Large and Nasdaq-100 Fund
Can any of the company-specific risk be diversified away by investing in both Aqr Large and Nasdaq-100 Fund 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 Nasdaq-100 Fund 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 Nasdaq 100 Fund Investor, you can compare the effects of market volatilities on Aqr Large and Nasdaq-100 Fund 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 Nasdaq-100 Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Nasdaq-100 Fund.
Diversification Opportunities for Aqr Large and Nasdaq-100 Fund
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aqr and Nasdaq-100 is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and Nasdaq 100 Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Fund 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 Nasdaq-100 Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 Fund has no effect on the direction of Aqr Large i.e., Aqr Large and Nasdaq-100 Fund go up and down completely randomly.
Pair Corralation between Aqr Large and Nasdaq-100 Fund
Assuming the 90 days horizon Aqr Large Cap is expected to generate 0.94 times more return on investment than Nasdaq-100 Fund. However, Aqr Large Cap is 1.06 times less risky than Nasdaq-100 Fund. It trades about 0.2 of its potential returns per unit of risk. Nasdaq 100 Fund Investor is currently generating about 0.05 per unit of risk. If you would invest 2,453 in Aqr Large Cap on August 30, 2024 and sell it today you would earn a total of 113.00 from holding Aqr Large Cap or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Large Cap vs. Nasdaq 100 Fund Investor
Performance |
| Timeline |
| Aqr Large Cap |
| Nasdaq 100 Fund |
Aqr Large and Nasdaq-100 Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and Nasdaq-100 Fund
The main advantage of trading using opposite Aqr Large and Nasdaq-100 Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large position performs unexpectedly, Nasdaq-100 Fund 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 Nasdaq-100 Fund will offset losses from the drop in Nasdaq-100 Fund's long position.| Aqr Large vs. Growth Fund Of | Aqr Large vs. HUMANA INC | Aqr Large vs. Aquagold International | Aqr Large vs. Barloworld Ltd ADR |
| Nasdaq-100 Fund vs. Nasdaq 100 Profund Nasdaq 100 | Nasdaq-100 Fund vs. Nasdaq 100 Profund Nasdaq 100 | Nasdaq-100 Fund vs. Nasdaq 100 Index Fund | Nasdaq-100 Fund vs. Nasdaq 100 Fund Class |
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 Stocks Directory module to find actively traded stocks across global markets.
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