Correlation Between Aqr Global and Asg Global
Can any of the company-specific risk be diversified away by investing in both Aqr Global and Asg Global 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 Asg Global 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 Asg Global Alternatives, you can compare the effects of market volatilities on Aqr Global and Asg Global 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 Asg Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Global and Asg Global.
Diversification Opportunities for Aqr Global and Asg Global
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aqr and Asg is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Global Macro and Asg Global Alternatives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Global Alternatives 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 Asg Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Global Alternatives has no effect on the direction of Aqr Global i.e., Aqr Global and Asg Global go up and down completely randomly.
Pair Corralation between Aqr Global and Asg Global
Assuming the 90 days horizon Aqr Global Macro is expected to generate 1.47 times more return on investment than Asg Global. However, Aqr Global is 1.47 times more volatile than Asg Global Alternatives. It trades about 0.07 of its potential returns per unit of risk. Asg Global Alternatives is currently generating about -0.16 per unit of risk. If you would invest 937.00 in Aqr Global Macro on October 11, 2024 and sell it today you would earn a total of 7.00 from holding Aqr Global Macro or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Global Macro vs. Asg Global Alternatives
Performance |
| Timeline |
| Aqr Global Macro |
| Asg Global Alternatives |
Aqr Global and Asg Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Global and Asg Global
The main advantage of trading using opposite Aqr Global and Asg Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Global position performs unexpectedly, Asg Global 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 Asg Global will offset losses from the drop in Asg Global's long position.| Aqr Global vs. Victory Rs Partners | Aqr Global vs. Fidelity Small Cap | Aqr Global vs. Small Cap Value Fund | Aqr Global vs. Amg River Road |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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