Correlation Between Aqr Long-short and Columbia High
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Columbia High 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 Columbia High 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 High Yield, you can compare the effects of market volatilities on Aqr Long-short and Columbia High 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 Columbia High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Columbia High.
Diversification Opportunities for Aqr Long-short and Columbia High
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqr and Columbia is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Columbia High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia High Yield 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 Columbia High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia High Yield has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Columbia High go up and down completely randomly.
Pair Corralation between Aqr Long-short and Columbia High
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 2.01 times more return on investment than Columbia High. However, Aqr Long-short is 2.01 times more volatile than Columbia High Yield. It trades about 0.24 of its potential returns per unit of risk. Columbia High Yield is currently generating about 0.26 per unit of risk. If you would invest 1,566 in Aqr Long Short Equity on October 21, 2024 and sell it today you would earn a total of 32.00 from holding Aqr Long Short Equity or generate 2.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Aqr Long Short Equity vs. Columbia High Yield
Performance |
Timeline |
Aqr Long Short |
Columbia High Yield |
Aqr Long-short and Columbia High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aqr Long-short and Columbia High
The main advantage of trading using opposite Aqr Long-short and Columbia High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Columbia High 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 High will offset losses from the drop in Columbia High's long position.Aqr Long-short vs. Mirova Global Green | Aqr Long-short vs. Us Global Investors | Aqr Long-short vs. Morningstar Global Income | Aqr Long-short vs. Barings Global Floating |
Columbia High vs. Ab Government Exchange | Columbia High vs. Virtus Seix Government | Columbia High vs. Dws Government Money | Columbia High vs. Us Government Securities |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |