Correlation Between Jacob Micro and Aqr Long
Can any of the company-specific risk be diversified away by investing in both Jacob Micro and Aqr Long 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 Jacob Micro and Aqr Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacob Micro Cap and Aqr Long Short Equity, you can compare the effects of market volatilities on Jacob Micro and Aqr Long 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 Jacob Micro with a short position of Aqr Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacob Micro and Aqr Long.
Diversification Opportunities for Jacob Micro and Aqr Long
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jacob and Aqr is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jacob Micro Cap 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 Jacob Micro 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 Jacob Micro Cap are associated (or correlated) with Aqr Long. 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 Jacob Micro i.e., Jacob Micro and Aqr Long go up and down completely randomly.
Pair Corralation between Jacob Micro and Aqr Long
Assuming the 90 days horizon Jacob Micro Cap is expected to generate 2.89 times more return on investment than Aqr Long. However, Jacob Micro is 2.89 times more volatile than Aqr Long Short Equity. It trades about 0.15 of its potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.21 per unit of risk. If you would invest 2,629 in Jacob Micro Cap on September 12, 2024 and sell it today you would earn a total of 126.00 from holding Jacob Micro Cap or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jacob Micro Cap vs. Aqr Long Short Equity
Performance |
| Timeline |
| Jacob Micro Cap |
| Aqr Long Short |
Jacob Micro and Aqr Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacob Micro and Aqr Long
The main advantage of trading using opposite Jacob Micro and Aqr Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacob Micro position performs unexpectedly, Aqr Long 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 will offset losses from the drop in Aqr Long's long position.| Jacob Micro vs. Sp Smallcap 600 | Jacob Micro vs. Ab Small Cap | Jacob Micro vs. Cardinal Small Cap | Jacob Micro vs. Smallcap Growth Fund |
| Aqr Long vs. Diamond Hill Long Short | Aqr Long vs. Pimco Rae Worldwide | Aqr Long vs. SCOR PK | Aqr Long vs. Morningstar Unconstrained Allocation |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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