Correlation Between Aqr Global and Great West
Can any of the company-specific risk be diversified away by investing in both Aqr Global and Great West 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 Great West 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 Great West E Strategies, you can compare the effects of market volatilities on Aqr Global and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Global and Great West.
Diversification Opportunities for Aqr Global and Great West
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aqr and Great is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Global Macro and Great West E Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West E 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West E has no effect on the direction of Aqr Global i.e., Aqr Global and Great West go up and down completely randomly.
Pair Corralation between Aqr Global and Great West
Assuming the 90 days horizon Aqr Global Macro is expected to under-perform the Great West. In addition to that, Aqr Global is 2.0 times more volatile than Great West E Strategies. It trades about -0.01 of its total potential returns per unit of risk. Great West E Strategies is currently generating about 0.03 per unit of volatility. If you would invest 352.00 in Great West E Strategies on October 9, 2024 and sell it today you would earn a total of 13.00 from holding Great West E Strategies or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Global Macro vs. Great West E Strategies
Performance |
| Timeline |
| Aqr Global Macro |
| Great West E |
Aqr Global and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Global and Great West
The main advantage of trading using opposite Aqr Global and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Global position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.| Aqr Global vs. Aqr Large Cap | Aqr Global vs. Aqr Large Cap | Aqr Global vs. Aqr International Defensive | Aqr Global vs. Aqr International Defensive |
| Great West vs. Great West Securefoundation Balanced | Great West vs. Great West Lifetime 2020 | Great West vs. Great West Lifetime 2020 | Great West vs. Great West Lifetime 2020 |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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