Correlation Between Aqr Long and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Aqr Long 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 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 Atlanta, you can compare the effects of market volatilities on Aqr Long 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 with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long and Eaton Vance.
Diversification Opportunities for Aqr Long and Eaton Vance
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Eaton is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Eaton Vance Atlanta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Atlanta 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 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 Atlanta has no effect on the direction of Aqr Long i.e., Aqr Long and Eaton Vance go up and down completely randomly.
Pair Corralation between Aqr Long and Eaton Vance
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 0.6 times more return on investment than Eaton Vance. However, Aqr Long Short Equity is 1.67 times less risky than Eaton Vance. It trades about 0.19 of its potential returns per unit of risk. Eaton Vance Atlanta is currently generating about 0.07 per unit of risk. If you would invest 1,030 in Aqr Long Short Equity on September 12, 2024 and sell it today you would earn a total of 633.00 from holding Aqr Long Short Equity or generate 61.46% 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. Eaton Vance Atlanta
Performance |
| Timeline |
| Aqr Long Short |
| Eaton Vance Atlanta |
Aqr Long and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long and Eaton Vance
The main advantage of trading using opposite Aqr Long and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long 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 vs. Diamond Hill Long Short | Aqr Long vs. Pimco Rae Worldwide | Aqr Long vs. SCOR PK | Aqr Long vs. Morningstar Unconstrained Allocation |
| Eaton Vance vs. Vanguard Mid Cap Index | Eaton Vance vs. SCOR PK | Eaton Vance vs. Morningstar Unconstrained Allocation | Eaton Vance vs. Via Renewables |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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