Correlation Between Asg Global and Aqr Global
Can any of the company-specific risk be diversified away by investing in both Asg 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 Asg 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 Asg Global Alternatives and Aqr Global Macro, you can compare the effects of market volatilities on Asg 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 Asg Global with a short position of Aqr Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Global and Aqr Global.
Diversification Opportunities for Asg Global and Aqr Global
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asg and Aqr is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Asg Global Alternatives 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 Asg 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 Asg Global Alternatives 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 Asg Global i.e., Asg Global and Aqr Global go up and down completely randomly.
Pair Corralation between Asg Global and Aqr Global
Assuming the 90 days horizon Asg Global Alternatives is expected to under-perform the Aqr Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Asg Global Alternatives is 1.47 times less risky than Aqr Global. The mutual fund trades about -0.16 of its potential returns per unit of risk. The Aqr Global Macro is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 937.00 in Aqr Global Macro on October 11, 2024 and sell it today you would earn a total of 7.00 from holding Aqr Global Macro or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asg Global Alternatives vs. Aqr Global Macro
Performance |
| Timeline |
| Asg Global Alternatives |
| Aqr Global Macro |
Asg Global and Aqr Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asg Global and Aqr Global
The main advantage of trading using opposite Asg Global and Aqr Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg 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.| Asg Global vs. Putnam Vertible Securities | Asg Global vs. Invesco Vertible Securities | Asg Global vs. Franklin Vertible Securities | Asg Global vs. Rationalpier 88 Convertible |
| Aqr Global vs. Davis Financial Fund | Aqr Global vs. Gabelli Global Financial | Aqr Global vs. Putnam Global Financials | Aqr Global vs. Blackstone Secured Lending |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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