Correlation Between Aqr Diversified and Mainstay New
Can any of the company-specific risk be diversified away by investing in both Aqr Diversified and Mainstay New 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 Diversified and Mainstay New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Diversified Arbitrage and Mainstay New York, you can compare the effects of market volatilities on Aqr Diversified and Mainstay New 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 Diversified with a short position of Mainstay New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Diversified and Mainstay New.
Diversification Opportunities for Aqr Diversified and Mainstay New
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Mainstay is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Diversified Arbitrage and Mainstay New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay New York and Aqr Diversified 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 Diversified Arbitrage are associated (or correlated) with Mainstay New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay New York has no effect on the direction of Aqr Diversified i.e., Aqr Diversified and Mainstay New go up and down completely randomly.
Pair Corralation between Aqr Diversified and Mainstay New
Assuming the 90 days horizon Aqr Diversified Arbitrage is expected to under-perform the Mainstay New. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aqr Diversified Arbitrage is 2.06 times less risky than Mainstay New. The mutual fund trades about -0.24 of its potential returns per unit of risk. The Mainstay New York is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 966.00 in Mainstay New York on September 5, 2024 and sell it today you would earn a total of 15.00 from holding Mainstay New York or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aqr Diversified Arbitrage vs. Mainstay New York
Performance |
| Timeline |
| Aqr Diversified Arbitrage |
| Mainstay New York |
Aqr Diversified and Mainstay New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Diversified and Mainstay New
The main advantage of trading using opposite Aqr Diversified and Mainstay New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Diversified position performs unexpectedly, Mainstay New 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 Mainstay New will offset losses from the drop in Mainstay New's long position.| Aqr Diversified vs. Aqr Large Cap | Aqr Diversified vs. Aqr Large Cap | Aqr Diversified vs. Aqr International Defensive | Aqr Diversified vs. Aqr International Defensive |
| Mainstay New vs. Massmutual Select Diversified | Mainstay New vs. American Funds Conservative | Mainstay New vs. Aqr Diversified Arbitrage | Mainstay New vs. Lord Abbett Diversified |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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