Correlation Between Nuveen Large and Aqr Large
Can any of the company-specific risk be diversified away by investing in both Nuveen Large and Aqr Large 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 Nuveen Large and Aqr Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Large Cap and Aqr Large Cap, you can compare the effects of market volatilities on Nuveen Large and Aqr Large 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 Nuveen Large with a short position of Aqr Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Large and Aqr Large.
Diversification Opportunities for Nuveen Large and Aqr Large
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Nuveen and AQR is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Large Cap and Aqr Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Large Cap and Nuveen Large 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 Nuveen Large Cap are associated (or correlated) with Aqr Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Large Cap has no effect on the direction of Nuveen Large i.e., Nuveen Large and Aqr Large go up and down completely randomly.
Pair Corralation between Nuveen Large and Aqr Large
Assuming the 90 days horizon Nuveen Large is expected to generate 1.11 times less return on investment than Aqr Large. But when comparing it to its historical volatility, Nuveen Large Cap is 1.37 times less risky than Aqr Large. It trades about 0.09 of its potential returns per unit of risk. Aqr Large Cap is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,412 in Aqr Large Cap on August 24, 2024 and sell it today you would earn a total of 729.00 from holding Aqr Large Cap or generate 51.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Large Cap vs. Aqr Large Cap
Performance |
| Timeline |
| Nuveen Large Cap |
| Aqr Large Cap |
Nuveen Large and Aqr Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Large and Aqr Large
The main advantage of trading using opposite Nuveen Large and Aqr Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Large position performs unexpectedly, Aqr Large 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 Large will offset losses from the drop in Aqr Large's long position.| Nuveen Large vs. Nuveen Large Cap | Nuveen Large vs. Nuveen Large Cap | Nuveen Large vs. Janus Growth And | Nuveen Large vs. HUMANA INC |
| Aqr Large vs. Nuveen Large Cap | Aqr Large vs. Nuveen Large Cap | Aqr Large vs. HUMANA INC | Aqr Large vs. SCOR PK |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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