Correlation Between Aqr Long-short and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Ashmore Emerging 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 Ashmore Emerging 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 Ashmore Emerging Markets, you can compare the effects of market volatilities on Aqr Long-short and Ashmore Emerging 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 Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Ashmore Emerging.
Diversification Opportunities for Aqr Long-short and Ashmore Emerging
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Ashmore is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets 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 Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Aqr Long-short and Ashmore Emerging
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 1.41 times more return on investment than Ashmore Emerging. However, Aqr Long-short is 1.41 times more volatile than Ashmore Emerging Markets. It trades about 0.28 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about -0.04 per unit of risk. If you would invest 1,559 in Aqr Long Short Equity on October 20, 2024 and sell it today you would earn a total of 39.00 from holding Aqr Long Short Equity or generate 2.5% 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. Ashmore Emerging Markets
Performance |
| Timeline |
| Aqr Long Short |
| Ashmore Emerging Markets |
Aqr Long-short and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and Ashmore Emerging
The main advantage of trading using opposite Aqr Long-short and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Ashmore Emerging 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging's long position.| Aqr Long-short vs. Mirova Global Green | Aqr Long-short vs. Us Global Investors | Aqr Long-short vs. Morningstar Global Income | Aqr Long-short vs. Barings Global Floating |
| Ashmore Emerging vs. Us Vector Equity | Ashmore Emerging vs. Dreyfusstandish Global Fixed | Ashmore Emerging vs. T Rowe Price | Ashmore Emerging 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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