Correlation Between Guggenheim Macro and Aqr Diversified
Can any of the company-specific risk be diversified away by investing in both Guggenheim Macro and Aqr Diversified 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 Guggenheim Macro and Aqr Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Macro Opportunities and Aqr Diversified Arbitrage, you can compare the effects of market volatilities on Guggenheim Macro and Aqr Diversified 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 Guggenheim Macro with a short position of Aqr Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Macro and Aqr Diversified.
Diversification Opportunities for Guggenheim Macro and Aqr Diversified
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guggenheim and Aqr is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Macro Opportunities and Aqr Diversified Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Diversified Arbitrage and Guggenheim Macro 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 Guggenheim Macro Opportunities are associated (or correlated) with Aqr Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Diversified Arbitrage has no effect on the direction of Guggenheim Macro i.e., Guggenheim Macro and Aqr Diversified go up and down completely randomly.
Pair Corralation between Guggenheim Macro and Aqr Diversified
Assuming the 90 days horizon Guggenheim Macro Opportunities is expected to generate 0.65 times more return on investment than Aqr Diversified. However, Guggenheim Macro Opportunities is 1.55 times less risky than Aqr Diversified. It trades about 0.27 of its potential returns per unit of risk. Aqr Diversified Arbitrage is currently generating about -0.14 per unit of risk. If you would invest 2,463 in Guggenheim Macro Opportunities on August 30, 2024 and sell it today you would earn a total of 18.00 from holding Guggenheim Macro Opportunities or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Macro Opportunities vs. Aqr Diversified Arbitrage
Performance |
| Timeline |
| Guggenheim Macro Opp |
| Aqr Diversified Arbitrage |
Guggenheim Macro and Aqr Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Macro and Aqr Diversified
The main advantage of trading using opposite Guggenheim Macro and Aqr Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Macro position performs unexpectedly, Aqr Diversified 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 Diversified will offset losses from the drop in Aqr Diversified's long position.| Guggenheim Macro vs. HUMANA INC | Guggenheim Macro vs. Aquagold International | Guggenheim Macro vs. Barloworld Ltd ADR | Guggenheim Macro vs. Morningstar Unconstrained Allocation |
| Aqr Diversified vs. Gmo High Yield | Aqr Diversified vs. Victory High Yield | Aqr Diversified vs. Msift High Yield | Aqr Diversified vs. Pia High Yield |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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