Correlation Between Appleseed Fund and Aqr Long
Can any of the company-specific risk be diversified away by investing in both Appleseed Fund and Aqr Long 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 Appleseed Fund and Aqr Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Appleseed Fund Appleseed and Aqr Long Short Equity, you can compare the effects of market volatilities on Appleseed Fund and Aqr Long 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 Appleseed Fund with a short position of Aqr Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Appleseed Fund and Aqr Long.
Diversification Opportunities for Appleseed Fund and Aqr Long
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Appleseed and Aqr is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Appleseed Fund Appleseed and Aqr Long Short Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Long Short and Appleseed Fund 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 Appleseed Fund Appleseed are associated (or correlated) with Aqr Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Long Short has no effect on the direction of Appleseed Fund i.e., Appleseed Fund and Aqr Long go up and down completely randomly.
Pair Corralation between Appleseed Fund and Aqr Long
Assuming the 90 days horizon Appleseed Fund is expected to generate 2.29 times less return on investment than Aqr Long. In addition to that, Appleseed Fund is 1.45 times more volatile than Aqr Long Short Equity. It trades about 0.06 of its total potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.19 per unit of volatility. If you would invest 1,043 in Aqr Long Short Equity on September 14, 2024 and sell it today you would earn a total of 625.00 from holding Aqr Long Short Equity or generate 59.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Appleseed Fund Appleseed vs. Aqr Long Short Equity
Performance |
| Timeline |
| Appleseed Fund Appleseed |
| Aqr Long Short |
Appleseed Fund and Aqr Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Appleseed Fund and Aqr Long
The main advantage of trading using opposite Appleseed Fund and Aqr Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Appleseed Fund position performs unexpectedly, Aqr Long 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 Long will offset losses from the drop in Aqr Long's long position.| Appleseed Fund vs. Dodge Cox Stock | Appleseed Fund vs. Fm Investments Large | Appleseed Fund vs. Smead Value Fund | Appleseed Fund vs. T Rowe Price |
| Aqr Long vs. Wilmington Trust Retirement | Aqr Long vs. Fidelity Managed Retirement | Aqr Long vs. Columbia Moderate Growth | Aqr Long vs. Blackrock Moderate Prepared |
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 CEOs Directory module to screen CEOs from public companies around the world.
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