Correlation Between Catalystmillburn and Aqr Global
Can any of the company-specific risk be diversified away by investing in both Catalystmillburn and Aqr Global 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 Catalystmillburn and Aqr Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalystmillburn Hedge Strategy and Aqr Global Macro, you can compare the effects of market volatilities on Catalystmillburn and Aqr Global 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 Catalystmillburn with a short position of Aqr Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalystmillburn and Aqr Global.
Diversification Opportunities for Catalystmillburn and Aqr Global
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalystmillburn and Aqr is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Catalystmillburn Hedge Strateg and Aqr Global Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Global Macro and Catalystmillburn 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 Catalystmillburn Hedge Strategy are associated (or correlated) with Aqr Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Global Macro has no effect on the direction of Catalystmillburn i.e., Catalystmillburn and Aqr Global go up and down completely randomly.
Pair Corralation between Catalystmillburn and Aqr Global
Assuming the 90 days horizon Catalystmillburn Hedge Strategy is expected to generate 1.01 times more return on investment than Aqr Global. However, Catalystmillburn is 1.01 times more volatile than Aqr Global Macro. It trades about 0.21 of its potential returns per unit of risk. Aqr Global Macro is currently generating about 0.0 per unit of risk. If you would invest 3,764 in Catalystmillburn Hedge Strategy on August 31, 2024 and sell it today you would earn a total of 102.00 from holding Catalystmillburn Hedge Strategy or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalystmillburn Hedge Strateg vs. Aqr Global Macro
Performance |
| Timeline |
| Catalystmillburn Hedge |
| Aqr Global Macro |
Catalystmillburn and Aqr Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalystmillburn and Aqr Global
The main advantage of trading using opposite Catalystmillburn and Aqr Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalystmillburn position performs unexpectedly, Aqr Global 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 Global will offset losses from the drop in Aqr Global's long position.| Catalystmillburn vs. Qs Growth Fund | Catalystmillburn vs. Ab Value Fund | Catalystmillburn vs. T Rowe Price | Catalystmillburn vs. Semiconductor Ultrasector Profund |
| Aqr Global vs. Eagle Mlp Strategy | Aqr Global vs. Calvert Emerging Markets | Aqr Global vs. Siit Emerging Markets | Aqr Global vs. Transamerica Emerging Markets |
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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