Correlation Between Aqr Long and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Aqr Long and Federated Hermes 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 Federated Hermes 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 Federated Hermes Core, you can compare the effects of market volatilities on Aqr Long and Federated Hermes 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 Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long and Federated Hermes.
Diversification Opportunities for Aqr Long and Federated Hermes
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aqr and Federated is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Federated Hermes Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Core 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 Federated Hermes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Hermes Core has no effect on the direction of Aqr Long i.e., Aqr Long and Federated Hermes go up and down completely randomly.
Pair Corralation between Aqr Long and Federated Hermes
If you would invest 1,287 in Aqr Long Short Equity on September 12, 2024 and sell it today you would earn a total of 373.00 from holding Aqr Long Short Equity or generate 28.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Federated Hermes Core
Performance |
| Timeline |
| Aqr Long Short |
| Federated Hermes Core |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aqr Long and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long and Federated Hermes
The main advantage of trading using opposite Aqr Long and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long position performs unexpectedly, Federated Hermes 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 Federated Hermes will offset losses from the drop in Federated Hermes' long position.| Aqr Long vs. Needham Aggressive Growth | Aqr Long vs. Alliancebernstein Global High | Aqr Long vs. Artisan High Income | Aqr Long vs. Pace High Yield |
| Federated Hermes vs. Western Asset Diversified | Federated Hermes vs. Calvert Developed Market | Federated Hermes vs. Barings Emerging Markets | Federated Hermes vs. Aqr Long Short 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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