Correlation Between Aqr Large and Akre Focus
Can any of the company-specific risk be diversified away by investing in both Aqr Large and Akre Focus 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 Akre Focus 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 Akre Focus Fund, you can compare the effects of market volatilities on Aqr Large and Akre Focus 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 Akre Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Akre Focus.
Diversification Opportunities for Aqr Large and Akre Focus
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aqr and Akre is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and Akre Focus Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akre Focus 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 Akre Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akre Focus Fund has no effect on the direction of Aqr Large i.e., Aqr Large and Akre Focus go up and down completely randomly.
Pair Corralation between Aqr Large and Akre Focus
Assuming the 90 days horizon Aqr Large is expected to generate 1.5 times less return on investment than Akre Focus. But when comparing it to its historical volatility, Aqr Large Cap is 1.47 times less risky than Akre Focus. It trades about 0.18 of its potential returns per unit of risk. Akre Focus Fund is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 6,265 in Akre Focus Fund on August 30, 2024 and sell it today you would earn a total of 1,234 from holding Akre Focus Fund or generate 19.7% 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. Akre Focus Fund
Performance |
| Timeline |
| Aqr Large Cap |
| Akre Focus Fund |
Aqr Large and Akre Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and Akre Focus
The main advantage of trading using opposite Aqr Large and Akre Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large position performs unexpectedly, Akre Focus 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 Akre Focus will offset losses from the drop in Akre Focus' long position.| Aqr Large vs. Aqr International Defensive | Aqr Large vs. Mfs Research Fund | Aqr Large vs. Aqr Large Cap | Aqr Large vs. Aqr Managed Futures |
| Akre Focus vs. Osterweis Strategic Income | Akre Focus vs. Doubleline Low Duration | Akre Focus vs. Doubleline Total Return | Akre Focus vs. Vanguard Dividend Growth |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |