Correlation Between Aqr Long-short and Greenspring Fund
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Greenspring Fund 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 Greenspring Fund 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 Greenspring Fund Retail, you can compare the effects of market volatilities on Aqr Long-short and Greenspring Fund 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 Greenspring Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Greenspring Fund.
Diversification Opportunities for Aqr Long-short and Greenspring Fund
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aqr and Greenspring is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Greenspring Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenspring Fund Retail 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 Greenspring Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenspring Fund Retail has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Greenspring Fund go up and down completely randomly.
Pair Corralation between Aqr Long-short and Greenspring Fund
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 0.48 times more return on investment than Greenspring Fund. However, Aqr Long Short Equity is 2.09 times less risky than Greenspring Fund. It trades about 0.18 of its potential returns per unit of risk. Greenspring Fund Retail is currently generating about 0.03 per unit of risk. If you would invest 1,439 in Aqr Long Short Equity on October 25, 2024 and sell it today you would earn a total of 174.00 from holding Aqr Long Short Equity or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Greenspring Fund Retail
Performance |
| Timeline |
| Aqr Long Short |
| Greenspring Fund Retail |
Aqr Long-short and Greenspring Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and Greenspring Fund
The main advantage of trading using opposite Aqr Long-short and Greenspring Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Greenspring Fund 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 Greenspring Fund will offset losses from the drop in Greenspring Fund's long position.| Aqr Long-short vs. Energy Services Fund | Aqr Long-short vs. Hennessy Bp Energy | Aqr Long-short vs. Fidelity Advisor Energy | Aqr Long-short vs. Pimco Energy Tactical |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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