Correlation Between Old Westbury and Aqr Style

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Can any of the company-specific risk be diversified away by investing in both Old Westbury 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 Old Westbury and Aqr Style into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Large and Aqr Style Premia, you can compare the effects of market volatilities on Old Westbury 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 Old Westbury with a short position of Aqr Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Aqr Style.

Diversification Opportunities for Old Westbury and Aqr Style

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Old and Aqr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Large 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 Old Westbury 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 Old Westbury Large 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 Old Westbury i.e., Old Westbury and Aqr Style go up and down completely randomly.

Pair Corralation between Old Westbury and Aqr Style

If you would invest  2,084  in Old Westbury Large on September 6, 2024 and sell it today you would earn a total of  79.00  from holding Old Westbury Large or generate 3.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Old Westbury Large  vs.  Aqr Style Premia

 Performance 
       Timeline  
Old Westbury Large 

Risk-Adjusted Performance

20 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Old Westbury Large are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Old Westbury may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Aqr Style Premia 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Aqr Style Premia has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Aqr Style is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Old Westbury and Aqr Style Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Old Westbury and Aqr Style

The main advantage of trading using opposite Old Westbury and Aqr Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury 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.
The idea behind Old Westbury Large and Aqr Style Premia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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