Correlation Between Dws Global and Aqr Global
Can any of the company-specific risk be diversified away by investing in both Dws Global 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 Dws Global and Aqr Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dws Global Macro and Aqr Global Macro, you can compare the effects of market volatilities on Dws Global 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 Dws Global with a short position of Aqr Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dws Global and Aqr Global.
Diversification Opportunities for Dws Global and Aqr Global
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dws and Aqr is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dws Global Macro 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 Dws 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 Dws Global Macro 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 Dws Global i.e., Dws Global and Aqr Global go up and down completely randomly.
Pair Corralation between Dws Global and Aqr Global
Assuming the 90 days horizon Dws Global Macro is expected to generate 0.68 times more return on investment than Aqr Global. However, Dws Global Macro is 1.47 times less risky than Aqr Global. It trades about 0.34 of its potential returns per unit of risk. Aqr Global Macro is currently generating about 0.12 per unit of risk. If you would invest 1,013 in Dws Global Macro on November 4, 2024 and sell it today you would earn a total of 25.00 from holding Dws Global Macro or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dws Global Macro vs. Aqr Global Macro
Performance |
| Timeline |
| Dws Global Macro |
| Aqr Global Macro |
Dws Global and Aqr Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dws Global and Aqr Global
The main advantage of trading using opposite Dws Global and Aqr Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dws Global 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.| Dws Global vs. Financial Industries Fund | Dws Global vs. Rmb Mendon Financial | Dws Global vs. Goldman Sachs Financial | Dws Global vs. Blackrock Financial Institutions |
| Aqr Global vs. Elfun Government Money | Aqr Global vs. Hsbc Government Money | Aqr Global vs. Virtus Seix Government | Aqr Global vs. Ridgeworth Seix Government |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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