Correlation Between Federated Ohio and Aqr Large
Can any of the company-specific risk be diversified away by investing in both Federated Ohio and Aqr Large 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 Federated Ohio and Aqr Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Ohio Municipal and Aqr Large Cap, you can compare the effects of market volatilities on Federated Ohio and Aqr Large 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 Federated Ohio with a short position of Aqr Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Ohio and Aqr Large.
Diversification Opportunities for Federated Ohio and Aqr Large
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between FEDERATED and Aqr is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Federated Ohio Municipal and Aqr Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Large Cap and Federated Ohio 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 Federated Ohio Municipal are associated (or correlated) with Aqr Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Large Cap has no effect on the direction of Federated Ohio i.e., Federated Ohio and Aqr Large go up and down completely randomly.
Pair Corralation between Federated Ohio and Aqr Large
Assuming the 90 days horizon Federated Ohio is expected to generate 4.19 times less return on investment than Aqr Large. But when comparing it to its historical volatility, Federated Ohio Municipal is 6.59 times less risky than Aqr Large. It trades about 0.07 of its potential returns per unit of risk. Aqr Large Cap is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,053 in Aqr Large Cap on September 2, 2024 and sell it today you would earn a total of 607.00 from holding Aqr Large Cap or generate 29.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Ohio Municipal vs. Aqr Large Cap
Performance |
| Timeline |
| Federated Ohio Municipal |
| Aqr Large Cap |
Federated Ohio and Aqr Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Ohio and Aqr Large
The main advantage of trading using opposite Federated Ohio and Aqr Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Ohio position performs unexpectedly, Aqr Large 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 Large will offset losses from the drop in Aqr Large's long position.| Federated Ohio vs. Federated Emerging Market | Federated Ohio vs. Federated Mdt All | Federated Ohio vs. Federated Mdt Balanced | Federated Ohio vs. Federated Global Allocation |
| Aqr Large vs. Origin Emerging Markets | Aqr Large vs. Angel Oak Multi Strategy | Aqr Large vs. Artisan Emerging Markets | Aqr Large vs. Franklin Emerging Market |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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