Correlation Between Blackstone Alternative and Aqr Style
Can any of the company-specific risk be diversified away by investing in both Blackstone Alternative and Aqr Style 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 Blackstone Alternative and Aqr Style into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Alternative Multi Strategy and Aqr Style Premia, you can compare the effects of market volatilities on Blackstone Alternative and Aqr Style 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 Blackstone Alternative with a short position of Aqr Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Alternative and Aqr Style.
Diversification Opportunities for Blackstone Alternative and Aqr Style
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blackstone and Aqr is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Alternative Multi S and Aqr Style Premia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Style Premia and Blackstone Alternative 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 Blackstone Alternative Multi Strategy are associated (or correlated) with Aqr Style. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Style Premia has no effect on the direction of Blackstone Alternative i.e., Blackstone Alternative and Aqr Style go up and down completely randomly.
Pair Corralation between Blackstone Alternative and Aqr Style
Assuming the 90 days horizon Blackstone Alternative is expected to generate 2.34 times less return on investment than Aqr Style. But when comparing it to its historical volatility, Blackstone Alternative Multi Strategy is 9.16 times less risky than Aqr Style. It trades about 0.18 of its potential returns per unit of risk. Aqr Style Premia is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 617.00 in Aqr Style Premia on August 28, 2024 and sell it today you would earn a total of 196.00 from holding Aqr Style Premia or generate 31.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Alternative Multi S vs. Aqr Style Premia
Performance |
| Timeline |
| Blackstone Alternative |
| Aqr Style Premia |
Blackstone Alternative and Aqr Style Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Alternative and Aqr Style
The main advantage of trading using opposite Blackstone Alternative and Aqr Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Alternative position performs unexpectedly, Aqr Style 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 Style will offset losses from the drop in Aqr Style's long position.| Blackstone Alternative vs. Sp 500 Equal | Blackstone Alternative vs. Fidelity Contrafund | Blackstone Alternative vs. Lord Abbett Affiliated | Blackstone Alternative vs. Greenspring Fund Retail |
| Aqr Style vs. Nuveen All American Municipal | Aqr Style vs. T Rowe Price | Aqr Style vs. Morningstar Municipal Bond | Aqr Style vs. Counterpoint Tactical Municipal |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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