Correlation Between Aqr Long-short and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Eaton Vance 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 Eaton Vance 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 Eaton Vance Short, you can compare the effects of market volatilities on Aqr Long-short and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Eaton Vance.
Diversification Opportunities for Aqr Long-short and Eaton Vance
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqr and Eaton is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Eaton Vance Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Short has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Eaton Vance go up and down completely randomly.
Pair Corralation between Aqr Long-short and Eaton Vance
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 1.99 times more return on investment than Eaton Vance. However, Aqr Long-short is 1.99 times more volatile than Eaton Vance Short. It trades about 0.2 of its potential returns per unit of risk. Eaton Vance Short is currently generating about 0.08 per unit of risk. If you would invest 1,283 in Aqr Long Short Equity on November 3, 2024 and sell it today you would earn a total of 341.00 from holding Aqr Long Short Equity or generate 26.58% 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. Eaton Vance Short
Performance |
| Timeline |
| Aqr Long Short |
| Eaton Vance Short |
Aqr Long-short and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and Eaton Vance
The main advantage of trading using opposite Aqr Long-short and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Aqr Long-short vs. Hsbc Government Money | Aqr Long-short vs. Federated Government Income | Aqr Long-short vs. Aig Government Money | Aqr Long-short vs. Voya Government Money |
| Eaton Vance vs. Eaton Vance Richard | Eaton Vance vs. Eaton Vance Small Cap | Eaton Vance vs. Eaton Vance Short | Eaton Vance vs. Eaton Vance South |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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