Correlation Between Ab Municipal and Aqr Global
Can any of the company-specific risk be diversified away by investing in both Ab Municipal and Aqr Global 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 Ab Municipal and Aqr Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Municipal Bond and Aqr Global Macro, you can compare the effects of market volatilities on Ab Municipal and Aqr Global 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 Ab Municipal with a short position of Aqr Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Aqr Global.
Diversification Opportunities for Ab Municipal and Aqr Global
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AUNCX and Aqr is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and Aqr Global Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Global Macro and Ab Municipal 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 Ab Municipal Bond are associated (or correlated) with Aqr Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Global Macro has no effect on the direction of Ab Municipal i.e., Ab Municipal and Aqr Global go up and down completely randomly.
Pair Corralation between Ab Municipal and Aqr Global
Assuming the 90 days horizon Ab Municipal Bond is expected to generate 0.3 times more return on investment than Aqr Global. However, Ab Municipal Bond is 3.36 times less risky than Aqr Global. It trades about 0.04 of its potential returns per unit of risk. Aqr Global Macro is currently generating about 0.0 per unit of risk. If you would invest 1,028 in Ab Municipal Bond on October 16, 2024 and sell it today you would earn a total of 38.00 from holding Ab Municipal Bond or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Municipal Bond vs. Aqr Global Macro
Performance |
| Timeline |
| Ab Municipal Bond |
| Aqr Global Macro |
Ab Municipal and Aqr Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Aqr Global
The main advantage of trading using opposite Ab Municipal and Aqr Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal position performs unexpectedly, Aqr Global 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 Global will offset losses from the drop in Aqr Global's long position.| Ab Municipal vs. Red Oak Technology | Ab Municipal vs. Fidelity Advisor Technology | Ab Municipal vs. Dreyfus Technology Growth | Ab Municipal vs. Goldman Sachs Technology |
| Aqr Global vs. Commonwealth Global Fund | Aqr Global vs. Summit Global Investments | Aqr Global vs. Rbc Global Equity | Aqr Global vs. Harding Loevner Global |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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