Correlation Between ANT and Aqr Large
Can any of the company-specific risk be diversified away by investing in both ANT and Aqr Large 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 ANT and Aqr Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Aqr Large Cap, you can compare the effects of market volatilities on ANT and Aqr Large 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 ANT with a short position of Aqr Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Aqr Large.
Diversification Opportunities for ANT and Aqr Large
Significant diversification
The 3 months correlation between ANT and Aqr is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Aqr Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Large Cap and ANT 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 ANT are associated (or correlated) with Aqr Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Large Cap has no effect on the direction of ANT i.e., ANT and Aqr Large go up and down completely randomly.
Pair Corralation between ANT and Aqr Large
Assuming the 90 days trading horizon ANT is expected to generate 14.9 times more return on investment than Aqr Large. However, ANT is 14.9 times more volatile than Aqr Large Cap. It trades about 0.08 of its potential returns per unit of risk. Aqr Large Cap is currently generating about 0.24 per unit of risk. If you would invest 147.00 in ANT on November 1, 2024 and sell it today you would earn a total of 0.00 from holding ANT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
ANT vs. Aqr Large Cap
Performance |
| Timeline |
| ANT |
| Aqr Large Cap |
ANT and Aqr Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Aqr Large
The main advantage of trading using opposite ANT and Aqr Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Aqr Large 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 Aqr Large will offset losses from the drop in Aqr Large's long position.The idea behind ANT and Aqr Large Cap 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.| Aqr Large vs. Cohen Steers Mlp | Aqr Large vs. Hennessy Bp Energy | Aqr Large vs. World Energy Fund | Aqr Large vs. Tortoise Energy Independence |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |