Correlation Between Aqr Long-short and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Astor Long/short 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-short and Astor Long/short 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 Astor Longshort Fund, you can compare the effects of market volatilities on Aqr Long-short and Astor Long/short 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-short with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Astor Long/short.
Diversification Opportunities for Aqr Long-short and Astor Long/short
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Astor is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short and Aqr Long-short 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 Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Astor Long/short go up and down completely randomly.
Pair Corralation between Aqr Long-short and Astor Long/short
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 1.08 times more return on investment than Astor Long/short. However, Aqr Long-short is 1.08 times more volatile than Astor Longshort Fund. It trades about 0.46 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.19 per unit of risk. If you would invest 1,565 in Aqr Long Short Equity on August 24, 2024 and sell it today you would earn a total of 72.00 from holding Aqr Long Short Equity or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Astor Longshort Fund
Performance |
| Timeline |
| Aqr Long Short |
| Astor Long/short |
Aqr Long-short and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and Astor Long/short
The main advantage of trading using opposite Aqr Long-short and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Astor Long/short 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 Astor Long/short will offset losses from the drop in Astor Long/short's long position.| Aqr Long-short vs. Mid Cap Growth | Aqr Long-short vs. Growth Fund Of | Aqr Long-short vs. Artisan Small Cap | Aqr Long-short vs. T Rowe Price |
| Astor Long/short vs. Fidelity Managed Retirement | Astor Long/short vs. Pro Blend Moderate Term | Astor Long/short vs. Moderately Aggressive Balanced | Astor Long/short vs. Franklin Lifesmart Retirement |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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