Correlation Between Aqr Global and Calvert High
Can any of the company-specific risk be diversified away by investing in both Aqr Global and Calvert High 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 Calvert High 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 Calvert High Yield, you can compare the effects of market volatilities on Aqr Global and Calvert High 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 Calvert High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Global and Calvert High.
Diversification Opportunities for Aqr Global and Calvert High
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aqr and Calvert is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Global Macro and Calvert High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert High Yield 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 Calvert High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert High Yield has no effect on the direction of Aqr Global i.e., Aqr Global and Calvert High go up and down completely randomly.
Pair Corralation between Aqr Global and Calvert High
Assuming the 90 days horizon Aqr Global Macro is expected to generate 3.0 times more return on investment than Calvert High. However, Aqr Global is 3.0 times more volatile than Calvert High Yield. It trades about 0.12 of its potential returns per unit of risk. Calvert High Yield is currently generating about 0.26 per unit of risk. If you would invest 937.00 in Aqr Global Macro on October 28, 2024 and sell it today you would earn a total of 13.00 from holding Aqr Global Macro or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Global Macro vs. Calvert High Yield
Performance |
| Timeline |
| Aqr Global Macro |
| Calvert High Yield |
Aqr Global and Calvert High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Global and Calvert High
The main advantage of trading using opposite Aqr Global and Calvert High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Global position performs unexpectedly, Calvert High 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 Calvert High will offset losses from the drop in Calvert High's long position.| Aqr Global vs. Guidemark Large Cap | Aqr Global vs. Upright Assets Allocation | Aqr Global vs. Rational Strategic Allocation | Aqr Global vs. Hartford Moderate Allocation |
| Calvert High vs. Calvert Developed Market | Calvert High vs. Calvert Developed Market | Calvert High vs. Calvert Short Duration | Calvert High vs. Calvert International Responsible |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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