Correlation Between Aqr Global and Simt Large
Can any of the company-specific risk be diversified away by investing in both Aqr Global and Simt Large 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 Simt Large 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 Simt Large Cap, you can compare the effects of market volatilities on Aqr Global and Simt Large 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 Simt Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Global and Simt Large.
Diversification Opportunities for Aqr Global and Simt Large
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aqr and Simt is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Global Macro and Simt Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Large Cap 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 Simt Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Large Cap has no effect on the direction of Aqr Global i.e., Aqr Global and Simt Large go up and down completely randomly.
Pair Corralation between Aqr Global and Simt Large
Assuming the 90 days horizon Aqr Global Macro is expected to generate 0.16 times more return on investment than Simt Large. However, Aqr Global Macro is 6.2 times less risky than Simt Large. It trades about -0.04 of its potential returns per unit of risk. Simt Large Cap is currently generating about -0.24 per unit of risk. If you would invest 948.00 in Aqr Global Macro on October 10, 2024 and sell it today you would lose (5.00) from holding Aqr Global Macro or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aqr Global Macro vs. Simt Large Cap
Performance |
| Timeline |
| Aqr Global Macro |
| Simt Large Cap |
Aqr Global and Simt Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Global and Simt Large
The main advantage of trading using opposite Aqr Global and Simt Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Global position performs unexpectedly, Simt Large 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 Simt Large will offset losses from the drop in Simt Large's long position.| Aqr Global vs. Davis Financial Fund | Aqr Global vs. Gabelli Global Financial | Aqr Global vs. Putnam Global Financials | Aqr Global vs. Blackstone Secured Lending |
| Simt Large vs. Voya Government Money | Simt Large vs. Hsbc Government Money | Simt Large vs. Nationwide Government Bond | Simt Large vs. Schwab Government Money |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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