Correlation Between Crawford Multi and Aqr Long
Can any of the company-specific risk be diversified away by investing in both Crawford Multi and Aqr Long 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 Crawford Multi and Aqr Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crawford Multi Asset Income and Aqr Long Short Equity, you can compare the effects of market volatilities on Crawford Multi and Aqr Long 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 Crawford Multi with a short position of Aqr Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crawford Multi and Aqr Long.
Diversification Opportunities for Crawford Multi and Aqr Long
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Crawford and Aqr is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Crawford Multi Asset Income and Aqr Long Short Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Long Short and Crawford Multi 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 Crawford Multi Asset Income are associated (or correlated) with Aqr Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Long Short has no effect on the direction of Crawford Multi i.e., Crawford Multi and Aqr Long go up and down completely randomly.
Pair Corralation between Crawford Multi and Aqr Long
Assuming the 90 days horizon Crawford Multi is expected to generate 1.97 times less return on investment than Aqr Long. But when comparing it to its historical volatility, Crawford Multi Asset Income is 1.18 times less risky than Aqr Long. It trades about 0.3 of its potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 1,579 in Aqr Long Short Equity on September 3, 2024 and sell it today you would earn a total of 71.00 from holding Aqr Long Short Equity or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crawford Multi Asset Income vs. Aqr Long Short Equity
Performance |
| Timeline |
| Crawford Multi Asset |
| Aqr Long Short |
Crawford Multi and Aqr Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crawford Multi and Aqr Long
The main advantage of trading using opposite Crawford Multi and Aqr Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crawford Multi position performs unexpectedly, Aqr Long 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 Long will offset losses from the drop in Aqr Long's long position.| Crawford Multi vs. Adams Natural Resources | Crawford Multi vs. Salient Mlp Energy | Crawford Multi vs. Firsthand Alternative Energy | Crawford Multi vs. Gamco Natural Resources |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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