Correlation Between Aqr Long and Voya Global
Can any of the company-specific risk be diversified away by investing in both Aqr Long and Voya Global 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 Voya Global 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 Voya Global Bond, you can compare the effects of market volatilities on Aqr Long and Voya Global 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 Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long and Voya Global.
Diversification Opportunities for Aqr Long and Voya Global
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aqr and Voya is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Voya Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Bond 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 Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Bond has no effect on the direction of Aqr Long i.e., Aqr Long and Voya Global go up and down completely randomly.
Pair Corralation between Aqr Long and Voya Global
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 1.53 times more return on investment than Voya Global. However, Aqr Long is 1.53 times more volatile than Voya Global Bond. It trades about 0.22 of its potential returns per unit of risk. Voya Global Bond is currently generating about 0.04 per unit of risk. If you would invest 1,638 in Aqr Long Short Equity on September 18, 2024 and sell it today you would earn a total of 39.00 from holding Aqr Long Short Equity or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Voya Global Bond
Performance |
| Timeline |
| Aqr Long Short |
| Voya Global Bond |
Aqr Long and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long and Voya Global
The main advantage of trading using opposite Aqr Long and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long position performs unexpectedly, Voya Global 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 Voya Global will offset losses from the drop in Voya Global's long position.| Aqr Long vs. Aqr Large Cap | Aqr Long vs. Aqr Large Cap | Aqr Long vs. Aqr International Defensive | Aqr Long vs. Aqr International Defensive |
| Voya Global vs. Invesco Global Health | Voya Global vs. Prudential Health Sciences | Voya Global vs. Hartford Healthcare Hls | Voya Global vs. Highland Longshort Healthcare |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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