Correlation Between Greenspring Fund and Aqr Long-short
Can any of the company-specific risk be diversified away by investing in both Greenspring Fund 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 Greenspring Fund 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 Greenspring Fund Retail and Aqr Long Short Equity, you can compare the effects of market volatilities on Greenspring Fund 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 Greenspring Fund with a short position of Aqr Long-short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenspring Fund and Aqr Long-short.
Diversification Opportunities for Greenspring Fund and Aqr Long-short
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greenspring and Aqr is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Greenspring Fund Retail 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 Greenspring Fund 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 Greenspring Fund Retail 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 Greenspring Fund i.e., Greenspring Fund and Aqr Long-short go up and down completely randomly.
Pair Corralation between Greenspring Fund and Aqr Long-short
Assuming the 90 days horizon Greenspring Fund Retail is expected to under-perform the Aqr Long-short. In addition to that, Greenspring Fund is 1.82 times more volatile than Aqr Long Short Equity. It trades about -0.25 of its total potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.22 per unit of volatility. If you would invest 1,553 in Aqr Long Short Equity on October 10, 2024 and sell it today you would earn a total of 33.00 from holding Aqr Long Short Equity or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenspring Fund Retail vs. Aqr Long Short Equity
Performance |
| Timeline |
| Greenspring Fund Retail |
| Aqr Long Short |
Greenspring Fund and Aqr Long-short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenspring Fund and Aqr Long-short
The main advantage of trading using opposite Greenspring Fund and Aqr Long-short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenspring Fund 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.| Greenspring Fund vs. Berwyn Income Fund | Greenspring Fund vs. Fpa Crescent Fund | Greenspring Fund vs. James Balanced Golden | Greenspring Fund vs. Permanent Portfolio Class |
| Aqr Long-short vs. Pace Large Growth | Aqr Long-short vs. Rbc Global Equity | Aqr Long-short vs. Alternative Asset Allocation | Aqr Long-short vs. Qs Global Equity |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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