Correlation Between Aqr Long and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Aqr Long and Angel Oak 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 Long and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Long Short Equity and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Aqr Long and Angel Oak 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 Long with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long and Angel Oak.
Diversification Opportunities for Aqr Long and Angel Oak
Excellent diversification
The 3 months correlation between Aqr and Angel is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Angel Oak Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Multi and Aqr Long 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 Long Short Equity are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Multi has no effect on the direction of Aqr Long i.e., Aqr Long and Angel Oak go up and down completely randomly.
Pair Corralation between Aqr Long and Angel Oak
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 2.86 times more return on investment than Angel Oak. However, Aqr Long is 2.86 times more volatile than Angel Oak Multi Strategy. It trades about 0.12 of its potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.19 per unit of risk. If you would invest 1,538 in Aqr Long Short Equity on September 3, 2024 and sell it today you would earn a total of 112.00 from holding Aqr Long Short Equity or generate 7.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Aqr Long Short |
| Angel Oak Multi |
Aqr Long and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long and Angel Oak
The main advantage of trading using opposite Aqr Long and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Aqr Long vs. T Rowe Price | Aqr Long vs. Vanguard California Long Term | Aqr Long vs. Transamerica Funds | Aqr Long vs. Nuveen Minnesota Municipal |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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