Correlation Between Aqr Long-short and Jpmorgan International
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Jpmorgan International 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 Jpmorgan International 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 Jpmorgan International Value, you can compare the effects of market volatilities on Aqr Long-short and Jpmorgan International 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 Jpmorgan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Jpmorgan International.
Diversification Opportunities for Aqr Long-short and Jpmorgan International
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Jpmorgan is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Jpmorgan International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan International 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 Jpmorgan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan International has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Jpmorgan International go up and down completely randomly.
Pair Corralation between Aqr Long-short and Jpmorgan International
Assuming the 90 days horizon Aqr Long-short is expected to generate 1.34 times less return on investment than Jpmorgan International. But when comparing it to its historical volatility, Aqr Long Short Equity is 1.64 times less risky than Jpmorgan International. It trades about 0.39 of its potential returns per unit of risk. Jpmorgan International Value is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,415 in Jpmorgan International Value on November 3, 2024 and sell it today you would earn a total of 74.00 from holding Jpmorgan International Value or generate 5.23% 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. Jpmorgan International Value
Performance |
| Timeline |
| Aqr Long Short |
| Jpmorgan International |
Aqr Long-short and Jpmorgan International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and Jpmorgan International
The main advantage of trading using opposite Aqr Long-short and Jpmorgan International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Jpmorgan International 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 Jpmorgan International will offset losses from the drop in Jpmorgan International's long position.| Aqr Long-short vs. Hsbc Government Money | Aqr Long-short vs. Federated Government Income | Aqr Long-short vs. Aig Government Money | Aqr Long-short vs. Voya Government Money |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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