Correlation Between Aqr Long-short and Eventide Multi-asset
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Eventide Multi-asset 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 Eventide Multi-asset 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 Eventide Multi Asset Income, you can compare the effects of market volatilities on Aqr Long-short and Eventide Multi-asset 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 Eventide Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Eventide Multi-asset.
Diversification Opportunities for Aqr Long-short and Eventide Multi-asset
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and EVENTIDE is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Eventide Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Multi Asset 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 Eventide Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Multi Asset has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Eventide Multi-asset go up and down completely randomly.
Pair Corralation between Aqr Long-short and Eventide Multi-asset
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 1.02 times more return on investment than Eventide Multi-asset. However, Aqr Long-short is 1.02 times more volatile than Eventide Multi Asset Income. It trades about 0.18 of its potential returns per unit of risk. Eventide Multi Asset Income is currently generating about 0.1 per unit of risk. If you would invest 1,045 in Aqr Long Short Equity on August 30, 2024 and sell it today you would earn a total of 593.00 from holding Aqr Long Short Equity or generate 56.75% 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. Eventide Multi Asset Income
Performance |
| Timeline |
| Aqr Long Short |
| Eventide Multi Asset |
Aqr Long-short and Eventide Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and Eventide Multi-asset
The main advantage of trading using opposite Aqr Long-short and Eventide Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Eventide Multi-asset 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 Eventide Multi-asset will offset losses from the drop in Eventide Multi-asset's long position.| Aqr Long-short vs. Neuberger Berman Long | Aqr Long-short vs. Neuberger Berman Long | Aqr Long-short vs. Pimco Rae Worldwide |
| Eventide Multi-asset vs. Aqr Long Short Equity | Eventide Multi-asset vs. Touchstone Ultra Short | Eventide Multi-asset vs. Astor Longshort Fund | Eventide Multi-asset vs. Quantitative Longshort Equity |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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