Correlation Between Aqr Global and Chestnut Street
Can any of the company-specific risk be diversified away by investing in both Aqr Global and Chestnut Street 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 Chestnut Street 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 Chestnut Street Exchange, you can compare the effects of market volatilities on Aqr Global and Chestnut Street 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 Chestnut Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Global and Chestnut Street.
Diversification Opportunities for Aqr Global and Chestnut Street
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Chestnut is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Global Macro and Chestnut Street Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chestnut Street Exchange 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 Chestnut Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chestnut Street Exchange has no effect on the direction of Aqr Global i.e., Aqr Global and Chestnut Street go up and down completely randomly.
Pair Corralation between Aqr Global and Chestnut Street
Assuming the 90 days horizon Aqr Global is expected to generate 4.64 times less return on investment than Chestnut Street. But when comparing it to its historical volatility, Aqr Global Macro is 1.11 times less risky than Chestnut Street. It trades about 0.08 of its potential returns per unit of risk. Chestnut Street Exchange is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 112,963 in Chestnut Street Exchange on October 29, 2024 and sell it today you would earn a total of 4,640 from holding Chestnut Street Exchange or generate 4.11% 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. Chestnut Street Exchange
Performance |
| Timeline |
| Aqr Global Macro |
| Chestnut Street Exchange |
Aqr Global and Chestnut Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Global and Chestnut Street
The main advantage of trading using opposite Aqr Global and Chestnut Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Global position performs unexpectedly, Chestnut Street 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 Chestnut Street will offset losses from the drop in Chestnut Street's long position.| Aqr Global vs. Prudential Emerging Markets | Aqr Global vs. Delaware Limited Term Diversified | Aqr Global vs. Calvert Developed Market | Aqr Global vs. Aqr Sustainable Long Short |
| Chestnut Street vs. Lord Abbett Affiliated | Chestnut Street vs. Qs Large Cap | Chestnut Street vs. Nuveen Nwq Large Cap | Chestnut Street vs. Fidelity Large Cap |
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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