Correlation Between Vy Baron and Aqr Style
Can any of the company-specific risk be diversified away by investing in both Vy Baron and Aqr Style 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 Vy Baron and Aqr Style into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vy Baron Growth and Aqr Style Premia, you can compare the effects of market volatilities on Vy Baron and Aqr Style 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 Vy Baron with a short position of Aqr Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vy Baron and Aqr Style.
Diversification Opportunities for Vy Baron and Aqr Style
Very weak diversification
The 3 months correlation between IBSSX and Aqr is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Vy Baron Growth and Aqr Style Premia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Style Premia and Vy Baron 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 Vy Baron Growth are associated (or correlated) with Aqr Style. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Style Premia has no effect on the direction of Vy Baron i.e., Vy Baron and Aqr Style go up and down completely randomly.
Pair Corralation between Vy Baron and Aqr Style
Assuming the 90 days horizon Vy Baron is expected to generate 1.75 times less return on investment than Aqr Style. But when comparing it to its historical volatility, Vy Baron Growth is 2.06 times less risky than Aqr Style. It trades about 0.04 of its potential returns per unit of risk. Aqr Style Premia is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 719.00 in Aqr Style Premia on September 14, 2024 and sell it today you would earn a total of 99.00 from holding Aqr Style Premia or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Vy Baron Growth vs. Aqr Style Premia
Performance |
| Timeline |
| Vy Baron Growth |
| Aqr Style Premia |
Vy Baron and Aqr Style Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vy Baron and Aqr Style
The main advantage of trading using opposite Vy Baron and Aqr Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vy Baron position performs unexpectedly, Aqr Style 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 Style will offset losses from the drop in Aqr Style's long position.| Vy Baron vs. Voya Bond Index | Vy Baron vs. Voya Bond Index | Vy Baron vs. Voya Limited Maturity | Vy Baron vs. Voya Limited Maturity |
| Aqr Style vs. Artisan Small Cap | Aqr Style vs. Vy Baron Growth | Aqr Style vs. Rational Defensive Growth | Aqr Style vs. Mid Cap Growth |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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