Correlation Between Aqr Global and Saat Market
Can any of the company-specific risk be diversified away by investing in both Aqr Global and Saat Market 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 Saat Market 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 Saat Market Growth, you can compare the effects of market volatilities on Aqr Global and Saat Market 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 Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Global and Saat Market.
Diversification Opportunities for Aqr Global and Saat Market
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aqr and Saat is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Global Macro and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market Growth 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 Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of Aqr Global i.e., Aqr Global and Saat Market go up and down completely randomly.
Pair Corralation between Aqr Global and Saat Market
Assuming the 90 days horizon Aqr Global is expected to generate 2.76 times less return on investment than Saat Market. In addition to that, Aqr Global is 1.09 times more volatile than Saat Market Growth. It trades about 0.09 of its total potential returns per unit of risk. Saat Market Growth is currently generating about 0.27 per unit of volatility. If you would invest 1,227 in Saat Market Growth on November 3, 2024 and sell it today you would earn a total of 33.00 from holding Saat Market Growth or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Global Macro vs. Saat Market Growth
Performance |
| Timeline |
| Aqr Global Macro |
| Saat Market Growth |
Aqr Global and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Global and Saat Market
The main advantage of trading using opposite Aqr Global and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Global position performs unexpectedly, Saat Market 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 Saat Market will offset losses from the drop in Saat Market's long position.| Aqr Global vs. Catalystmillburn Hedge Strategy | Aqr Global vs. Catalystmillburn Hedge Strategy | Aqr Global vs. Catalystmillburn Hedge Strategy | Aqr Global vs. Catalystmillburn Hedge Strategy |
| Saat Market vs. Artisan Small Cap | Saat Market vs. Small Pany Growth | Saat Market vs. Praxis Small Cap | Saat Market vs. Smallcap Fund Fka |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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