Correlation Between Aqr Risk and Federated High
Can any of the company-specific risk be diversified away by investing in both Aqr Risk and Federated High 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 Risk and Federated High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Risk Parity and Federated High Yield, you can compare the effects of market volatilities on Aqr Risk and Federated High 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 Risk with a short position of Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Risk and Federated High.
Diversification Opportunities for Aqr Risk and Federated High
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Federated is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Risk Parity and Federated High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Yield and Aqr Risk 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 Risk Parity are associated (or correlated) with Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Yield has no effect on the direction of Aqr Risk i.e., Aqr Risk and Federated High go up and down completely randomly.
Pair Corralation between Aqr Risk and Federated High
Assuming the 90 days horizon Aqr Risk Parity is expected to generate 2.63 times more return on investment than Federated High. However, Aqr Risk is 2.63 times more volatile than Federated High Yield. It trades about 0.09 of its potential returns per unit of risk. Federated High Yield is currently generating about 0.16 per unit of risk. If you would invest 963.00 in Aqr Risk Parity on November 3, 2024 and sell it today you would earn a total of 132.00 from holding Aqr Risk Parity or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Risk Parity vs. Federated High Yield
Performance |
| Timeline |
| Aqr Risk Parity |
| Federated High Yield |
Aqr Risk and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Risk and Federated High
The main advantage of trading using opposite Aqr Risk and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Risk position performs unexpectedly, Federated High 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 Federated High will offset losses from the drop in Federated High's long position.| Aqr Risk vs. Towpath Technology | Aqr Risk vs. Blackrock Science Technology | Aqr Risk vs. Red Oak Technology | Aqr Risk vs. Science Technology Fund |
| Federated High vs. Janus High Yield Fund | Federated High vs. High Yield Fund Investor | Federated High vs. Northern High Yield |
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.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |