Correlation Between Aqr Global and Investec Emerging
Can any of the company-specific risk be diversified away by investing in both Aqr Global and Investec Emerging 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 Investec Emerging 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 Investec Emerging Markets, you can compare the effects of market volatilities on Aqr Global and Investec Emerging 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 Investec Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Global and Investec Emerging.
Diversification Opportunities for Aqr Global and Investec Emerging
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Investec is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Global Macro and Investec Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec Emerging Markets 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 Investec Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Emerging Markets has no effect on the direction of Aqr Global i.e., Aqr Global and Investec Emerging go up and down completely randomly.
Pair Corralation between Aqr Global and Investec Emerging
Assuming the 90 days horizon Aqr Global Macro is expected to generate 0.81 times more return on investment than Investec Emerging. However, Aqr Global Macro is 1.24 times less risky than Investec Emerging. It trades about 0.14 of its potential returns per unit of risk. Investec Emerging Markets is currently generating about -0.23 per unit of risk. If you would invest 930.00 in Aqr Global Macro on October 10, 2024 and sell it today you would earn a total of 14.00 from holding Aqr Global Macro or generate 1.51% 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. Investec Emerging Markets
Performance |
| Timeline |
| Aqr Global Macro |
| Investec Emerging Markets |
Aqr Global and Investec Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Global and Investec Emerging
The main advantage of trading using opposite Aqr Global and Investec Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Global position performs unexpectedly, Investec Emerging 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 Investec Emerging will offset losses from the drop in Investec Emerging'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 |
| Investec Emerging vs. Wilmington Diversified Income | Investec Emerging vs. Adams Diversified Equity | Investec Emerging vs. Delaware Limited Term Diversified | Investec Emerging vs. Stone Ridge Diversified |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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