Correlation Between Aqr Global and Aqr Large
Can any of the company-specific risk be diversified away by investing in both Aqr Global 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 Aqr Global and Aqr Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Global Macro and Aqr Large Cap, you can compare the effects of market volatilities on Aqr Global 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 Aqr Global with a short position of Aqr Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Global and Aqr Large.
Diversification Opportunities for Aqr Global and Aqr Large
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aqr and Aqr is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Global Macro 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 Aqr Global 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 Global Macro 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 Aqr Global i.e., Aqr Global and Aqr Large go up and down completely randomly.
Pair Corralation between Aqr Global and Aqr Large
Assuming the 90 days horizon Aqr Global Macro is expected to under-perform the Aqr Large. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aqr Global Macro is 1.71 times less risky than Aqr Large. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Aqr Large Cap is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,091 in Aqr Large Cap on September 2, 2024 and sell it today you would earn a total of 490.00 from holding Aqr Large Cap or generate 23.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Global Macro vs. Aqr Large Cap
Performance |
| Timeline |
| Aqr Global Macro |
| Aqr Large Cap |
Aqr Global and Aqr Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Global and Aqr Large
The main advantage of trading using opposite Aqr Global and Aqr Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Global 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.| Aqr Global vs. Aqr Large Cap | Aqr Global vs. Aqr Large Cap | Aqr Global vs. Aqr International Defensive | Aqr Global vs. Aqr International Defensive |
| Aqr Large vs. Aqr Long Short Equity | Aqr Large vs. Old Westbury Short Term | Aqr Large vs. Federated Ultrashort Bond | Aqr Large vs. Sterling Capital Short |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |