Correlation Between Aqr Long and Columbia Capital
Can any of the company-specific risk be diversified away by investing in both Aqr Long and Columbia Capital 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 Columbia Capital 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 Columbia Capital Allocation, you can compare the effects of market volatilities on Aqr Long and Columbia Capital 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 Columbia Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long and Columbia Capital.
Diversification Opportunities for Aqr Long and Columbia Capital
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aqr and Columbia is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Columbia Capital Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Capital All 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 Columbia Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Capital All has no effect on the direction of Aqr Long i.e., Aqr Long and Columbia Capital go up and down completely randomly.
Pair Corralation between Aqr Long and Columbia Capital
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 1.28 times more return on investment than Columbia Capital. However, Aqr Long is 1.28 times more volatile than Columbia Capital Allocation. It trades about 0.21 of its potential returns per unit of risk. Columbia Capital Allocation is currently generating about -0.15 per unit of risk. If you would invest 1,627 in Aqr Long Short Equity on September 12, 2024 and sell it today you would earn a total of 36.00 from holding Aqr Long Short Equity or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 57.14% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Columbia Capital Allocation
Performance |
| Timeline |
| Aqr Long Short |
| Columbia Capital All |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Aqr Long and Columbia Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long and Columbia Capital
The main advantage of trading using opposite Aqr Long and Columbia Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long position performs unexpectedly, Columbia Capital 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 Columbia Capital will offset losses from the drop in Columbia Capital's long position.| Aqr Long vs. Diamond Hill Long Short | Aqr Long vs. Pimco Rae Worldwide | Aqr Long vs. SCOR PK | Aqr Long vs. Morningstar Unconstrained Allocation |
| Columbia Capital vs. Aqr Long Short Equity | Columbia Capital vs. Siit Ultra Short | Columbia Capital vs. Barings Active Short | Columbia Capital vs. Angel Oak Ultrashort |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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