Correlation Between Aqr Global and Nuveen Limited
Can any of the company-specific risk be diversified away by investing in both Aqr Global and Nuveen Limited 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 Nuveen Limited 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 Nuveen Limited Term, you can compare the effects of market volatilities on Aqr Global and Nuveen Limited 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 Nuveen Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Global and Nuveen Limited.
Diversification Opportunities for Aqr Global and Nuveen Limited
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aqr and Nuveen is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Global Macro and Nuveen Limited Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Limited Term 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 Nuveen Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Limited Term has no effect on the direction of Aqr Global i.e., Aqr Global and Nuveen Limited go up and down completely randomly.
Pair Corralation between Aqr Global and Nuveen Limited
Assuming the 90 days horizon Aqr Global Macro is expected to generate 4.61 times more return on investment than Nuveen Limited. However, Aqr Global is 4.61 times more volatile than Nuveen Limited Term. It trades about 0.12 of its potential returns per unit of risk. Nuveen Limited Term is currently generating about 0.13 per unit of risk. If you would invest 948.00 in Aqr Global Macro on November 4, 2024 and sell it today you would earn a total of 12.00 from holding Aqr Global Macro or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Aqr Global Macro vs. Nuveen Limited Term
Performance |
| Timeline |
| Aqr Global Macro |
| Nuveen Limited Term |
Aqr Global and Nuveen Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Global and Nuveen Limited
The main advantage of trading using opposite Aqr Global and Nuveen Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Global position performs unexpectedly, Nuveen Limited 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 Nuveen Limited will offset losses from the drop in Nuveen Limited's long position.| Aqr Global vs. Elfun Government Money | Aqr Global vs. Hsbc Government Money | Aqr Global vs. Virtus Seix Government | Aqr Global vs. Ridgeworth Seix Government |
| Nuveen Limited vs. Qs Global Equity | Nuveen Limited vs. Qs Large Cap | Nuveen Limited vs. L Abbett Growth | Nuveen Limited vs. Growth Portfolio Class |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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