Correlation Between Aqr Large and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Aqr Large and Loomis Sayles 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 Aqr Large and Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Large Cap and Loomis Sayles International, you can compare the effects of market volatilities on Aqr Large and Loomis Sayles 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 Aqr Large with a short position of Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Loomis Sayles.
Diversification Opportunities for Aqr Large and Loomis Sayles
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqr and Loomis is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and Loomis Sayles International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Intern and Aqr Large 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 Aqr Large Cap are associated (or correlated) with Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Intern has no effect on the direction of Aqr Large i.e., Aqr Large and Loomis Sayles go up and down completely randomly.
Pair Corralation between Aqr Large and Loomis Sayles
Assuming the 90 days horizon Aqr Large Cap is expected to generate 1.25 times more return on investment than Loomis Sayles. However, Aqr Large is 1.25 times more volatile than Loomis Sayles International. It trades about 0.08 of its potential returns per unit of risk. Loomis Sayles International is currently generating about 0.06 per unit of risk. If you would invest 1,490 in Aqr Large Cap on August 31, 2024 and sell it today you would earn a total of 679.00 from holding Aqr Large Cap or generate 45.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Large Cap vs. Loomis Sayles International
Performance |
| Timeline |
| Aqr Large Cap |
| Loomis Sayles Intern |
Aqr Large and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and Loomis Sayles
The main advantage of trading using opposite Aqr Large and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Aqr Large vs. Allianzgi Health Sciences | Aqr Large vs. Lord Abbett Health | Aqr Large vs. Blackrock Health Sciences | Aqr Large vs. Health Biotchnology Portfolio |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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