Correlation Between Aqr Long and Nationwide Small
Can any of the company-specific risk be diversified away by investing in both Aqr Long and Nationwide Small 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 Nationwide Small 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 Nationwide Small Cap, you can compare the effects of market volatilities on Aqr Long and Nationwide Small 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 Nationwide Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long and Nationwide Small.
Diversification Opportunities for Aqr Long and Nationwide Small
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aqr and Nationwide is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Nationwide Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Small Cap 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 Nationwide Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Small Cap has no effect on the direction of Aqr Long i.e., Aqr Long and Nationwide Small go up and down completely randomly.
Pair Corralation between Aqr Long and Nationwide Small
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 0.36 times more return on investment than Nationwide Small. However, Aqr Long Short Equity is 2.79 times less risky than Nationwide Small. It trades about 0.22 of its potential returns per unit of risk. Nationwide Small Cap is currently generating about 0.05 per unit of risk. If you would invest 1,162 in Aqr Long Short Equity on September 12, 2024 and sell it today you would earn a total of 501.00 from holding Aqr Long Short Equity or generate 43.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Nationwide Small Cap
Performance |
| Timeline |
| Aqr Long Short |
| Nationwide Small Cap |
Aqr Long and Nationwide Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long and Nationwide Small
The main advantage of trading using opposite Aqr Long and Nationwide Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long position performs unexpectedly, Nationwide Small 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 Nationwide Small will offset losses from the drop in Nationwide Small'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 |
| Nationwide Small vs. Aqr Long Short Equity | Nationwide Small vs. Astor Longshort Fund | Nationwide Small vs. Barings Active Short | Nationwide Small vs. Cmg Ultra Short |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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