Correlation Between Eic Value and Aqr Long-short
Can any of the company-specific risk be diversified away by investing in both Eic Value and Aqr Long-short 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 Eic Value and Aqr Long-short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Aqr Long Short Equity, you can compare the effects of market volatilities on Eic Value and Aqr Long-short 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 Eic Value with a short position of Aqr Long-short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Aqr Long-short.
Diversification Opportunities for Eic Value and Aqr Long-short
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eic and Aqr is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund 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 Eic Value 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 Eic Value Fund are associated (or correlated) with Aqr Long-short. 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 Eic Value i.e., Eic Value and Aqr Long-short go up and down completely randomly.
Pair Corralation between Eic Value and Aqr Long-short
Assuming the 90 days horizon Eic Value Fund is expected to under-perform the Aqr Long-short. In addition to that, Eic Value is 1.4 times more volatile than Aqr Long Short Equity. It trades about 0.0 of its total potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.48 per unit of volatility. If you would invest 1,565 in Aqr Long Short Equity on August 24, 2024 and sell it today you would earn a total of 75.00 from holding Aqr Long Short Equity or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Aqr Long Short Equity
Performance |
| Timeline |
| Eic Value Fund |
| Aqr Long Short |
Eic Value and Aqr Long-short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Aqr Long-short
The main advantage of trading using opposite Eic Value and Aqr Long-short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Aqr Long-short 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-short will offset losses from the drop in Aqr Long-short's long position.| Eic Value vs. Vanguard Small Cap Value | Eic Value vs. Vanguard Mid Cap Value | Eic Value vs. Vanguard Small Cap Index | Eic Value vs. Vanguard Emerging Markets |
| Aqr Long-short vs. Ultra Short Fixed Income | Aqr Long-short vs. Touchstone Ultra Short | Aqr Long-short vs. Quantitative Longshort Equity | Aqr Long-short vs. Old Westbury Short Term |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |