Correlation Between Allianzgi Nfj and Aqr Long
Can any of the company-specific risk be diversified away by investing in both Allianzgi Nfj 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 Allianzgi Nfj and Aqr Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Nfj Small Cap and Aqr Long Short Equity, you can compare the effects of market volatilities on Allianzgi Nfj 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 Allianzgi Nfj with a short position of Aqr Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Nfj and Aqr Long.
Diversification Opportunities for Allianzgi Nfj and Aqr Long
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianzgi and Aqr is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj Small 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 Allianzgi Nfj 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 Allianzgi Nfj Small 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 Allianzgi Nfj i.e., Allianzgi Nfj and Aqr Long go up and down completely randomly.
Pair Corralation between Allianzgi Nfj and Aqr Long
Assuming the 90 days horizon Allianzgi Nfj Small Cap is expected to generate 3.18 times more return on investment than Aqr Long. However, Allianzgi Nfj is 3.18 times more volatile than Aqr Long Short Equity. It trades about 0.27 of its potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.49 per unit of risk. If you would invest 1,624 in Allianzgi Nfj Small Cap on September 4, 2024 and sell it today you would earn a total of 131.00 from holding Allianzgi Nfj Small Cap or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Allianzgi Nfj Small Cap vs. Aqr Long Short Equity
Performance |
| Timeline |
| Allianzgi Nfj Small |
| Aqr Long Short |
Allianzgi Nfj and Aqr Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Nfj and Aqr Long
The main advantage of trading using opposite Allianzgi Nfj and Aqr Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Nfj 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.| Allianzgi Nfj vs. Chase Growth Fund | Allianzgi Nfj vs. Qs Growth Fund | Allianzgi Nfj vs. Champlain Mid Cap | Allianzgi Nfj vs. Goldman Sachs Growth |
| Aqr Long vs. Salient Mlp Energy | Aqr Long vs. Gmo Resources | Aqr Long vs. Firsthand Alternative Energy | Aqr Long vs. Franklin Natural Resources |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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