Correlation Between Aqr Long and Fidelity Sai
Can any of the company-specific risk be diversified away by investing in both Aqr Long and Fidelity Sai 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 Fidelity Sai 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 Fidelity Sai Large, you can compare the effects of market volatilities on Aqr Long and Fidelity Sai 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 Fidelity Sai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long and Fidelity Sai.
Diversification Opportunities for Aqr Long and Fidelity Sai
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqr and Fidelity is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Fidelity Sai Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Large 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 Fidelity Sai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sai Large has no effect on the direction of Aqr Long i.e., Aqr Long and Fidelity Sai go up and down completely randomly.
Pair Corralation between Aqr Long and Fidelity Sai
Assuming the 90 days horizon Aqr Long is expected to generate 1.14 times less return on investment than Fidelity Sai. But when comparing it to its historical volatility, Aqr Long Short Equity is 1.35 times less risky than Fidelity Sai. It trades about 0.25 of its potential returns per unit of risk. Fidelity Sai Large is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,311 in Fidelity Sai Large on September 12, 2024 and sell it today you would earn a total of 210.00 from holding Fidelity Sai Large or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Fidelity Sai Large
Performance |
| Timeline |
| Aqr Long Short |
| Fidelity Sai Large |
Aqr Long and Fidelity Sai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long and Fidelity Sai
The main advantage of trading using opposite Aqr Long and Fidelity Sai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long position performs unexpectedly, Fidelity Sai 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 Fidelity Sai will offset losses from the drop in Fidelity Sai's 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 |
| Fidelity Sai vs. Dreyfus Short Intermediate | Fidelity Sai vs. Aqr Long Short Equity | Fidelity Sai vs. Quantitative Longshort Equity | Fidelity Sai vs. Boston Partners Longshort |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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