Correlation Between Barings Global and Aqr Diversified
Can any of the company-specific risk be diversified away by investing in both Barings Global and Aqr Diversified 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 Barings Global and Aqr Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and Aqr Diversified Arbitrage, you can compare the effects of market volatilities on Barings Global and Aqr Diversified 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 Barings Global with a short position of Aqr Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Aqr Diversified.
Diversification Opportunities for Barings Global and Aqr Diversified
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Barings and Aqr is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Aqr Diversified Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Diversified Arbitrage and Barings Global 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 Barings Global Floating are associated (or correlated) with Aqr Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Diversified Arbitrage has no effect on the direction of Barings Global i.e., Barings Global and Aqr Diversified go up and down completely randomly.
Pair Corralation between Barings Global and Aqr Diversified
Assuming the 90 days horizon Barings Global Floating is not expected to generate positive returns. However, Barings Global Floating is 2.11 times less risky than Aqr Diversified. It waists most of its returns potential to compensate for thr risk taken. Aqr Diversified is generating about 0.21 per unit of risk. If you would invest 1,211 in Aqr Diversified Arbitrage on November 7, 2024 and sell it today you would earn a total of 7.00 from holding Aqr Diversified Arbitrage or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Barings Global Floating vs. Aqr Diversified Arbitrage
Performance |
| Timeline |
| Barings Global Floating |
| Aqr Diversified Arbitrage |
Barings Global and Aqr Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Aqr Diversified
The main advantage of trading using opposite Barings Global and Aqr Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Aqr Diversified 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 Diversified will offset losses from the drop in Aqr Diversified's long position.| Barings Global vs. Voya Government Money | Barings Global vs. Great West Government Mortgage | Barings Global vs. Hsbc Government Money | Barings Global vs. Virtus Seix Government |
| Aqr Diversified vs. Fxybjx | Aqr Diversified vs. Fuhkbx | Aqr Diversified vs. Arrow Managed Futures | Aqr Diversified vs. Rational Dividend Capture |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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