Correlation Between Janus Global and Aqr Long-short
Can any of the company-specific risk be diversified away by investing in both Janus Global 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 Janus Global 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 Janus Global Technology and Aqr Long Short Equity, you can compare the effects of market volatilities on Janus Global 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 Janus Global with a short position of Aqr Long-short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and Aqr Long-short.
Diversification Opportunities for Janus Global and Aqr Long-short
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Janus and Aqr is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Technology 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 Janus 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 Janus Global Technology 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 Janus Global i.e., Janus Global and Aqr Long-short go up and down completely randomly.
Pair Corralation between Janus Global and Aqr Long-short
Assuming the 90 days horizon Janus Global Technology is expected to generate 2.72 times more return on investment than Aqr Long-short. However, Janus Global is 2.72 times more volatile than Aqr Long Short Equity. It trades about 0.09 of its potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.2 per unit of risk. If you would invest 3,693 in Janus Global Technology on October 11, 2024 and sell it today you would earn a total of 2,624 from holding Janus Global Technology or generate 71.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Global Technology vs. Aqr Long Short Equity
Performance |
| Timeline |
| Janus Global Technology |
| Aqr Long Short |
Janus Global and Aqr Long-short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Global and Aqr Long-short
The main advantage of trading using opposite Janus Global and Aqr Long-short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Global 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.| Janus Global vs. Tax Managed Large Cap | Janus Global vs. Dodge Cox Stock | Janus Global vs. Guidemark Large Cap | Janus Global vs. Fundamental Large Cap |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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