Correlation Between Aqr Global and Catalyst/millburn
Can any of the company-specific risk be diversified away by investing in both Aqr Global and Catalyst/millburn 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 Catalyst/millburn 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 Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Aqr Global and Catalyst/millburn 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 Catalyst/millburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Global and Catalyst/millburn.
Diversification Opportunities for Aqr Global and Catalyst/millburn
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aqr and Catalyst/millburn is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Global Macro and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge 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 Catalyst/millburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Aqr Global i.e., Aqr Global and Catalyst/millburn go up and down completely randomly.
Pair Corralation between Aqr Global and Catalyst/millburn
Assuming the 90 days horizon Aqr Global is expected to generate 1.41 times less return on investment than Catalyst/millburn. In addition to that, Aqr Global is 1.03 times more volatile than Catalystmillburn Hedge Strategy. It trades about 0.17 of its total potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.24 per unit of volatility. If you would invest 3,861 in Catalystmillburn Hedge Strategy on October 23, 2024 and sell it today you would earn a total of 106.00 from holding Catalystmillburn Hedge Strategy or generate 2.75% 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. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Aqr Global Macro |
| Catalystmillburn Hedge |
Aqr Global and Catalyst/millburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Global and Catalyst/millburn
The main advantage of trading using opposite Aqr Global and Catalyst/millburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Global position performs unexpectedly, Catalyst/millburn 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 Catalyst/millburn will offset losses from the drop in Catalyst/millburn's long position.| Aqr Global vs. Calamos Dynamic Convertible | Aqr Global vs. Lord Abbett Convertible | Aqr Global vs. Allianzgi Convertible Income | Aqr Global vs. Virtus Convertible |
| Catalyst/millburn vs. Transamerica Asset Allocation | Catalyst/millburn vs. Qs Large Cap | Catalyst/millburn vs. Ab Global Bond | Catalyst/millburn vs. Rbc Funds Trust |
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 CEOs Directory module to screen CEOs from public companies around the world.
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