Correlation Between Aqr Long-short and Jpmorgan Intrepid
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Jpmorgan Intrepid 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 Intrepid 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 Intrepid Growth, you can compare the effects of market volatilities on Aqr Long-short and Jpmorgan Intrepid 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 Intrepid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Jpmorgan Intrepid.
Diversification Opportunities for Aqr Long-short and Jpmorgan Intrepid
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Jpmorgan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Jpmorgan Intrepid Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Intrepid Growth 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 Intrepid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Intrepid Growth has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Jpmorgan Intrepid go up and down completely randomly.
Pair Corralation between Aqr Long-short and Jpmorgan Intrepid
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 0.39 times more return on investment than Jpmorgan Intrepid. However, Aqr Long Short Equity is 2.59 times less risky than Jpmorgan Intrepid. It trades about 0.58 of its potential returns per unit of risk. Jpmorgan Intrepid Growth is currently generating about 0.11 per unit of risk. If you would invest 1,561 in Aqr Long Short Equity on August 26, 2024 and sell it today you would earn a total of 84.00 from holding Aqr Long Short Equity or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Jpmorgan Intrepid Growth
Performance |
| Timeline |
| Aqr Long Short |
| Jpmorgan Intrepid Growth |
Aqr Long-short and Jpmorgan Intrepid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and Jpmorgan Intrepid
The main advantage of trading using opposite Aqr Long-short and Jpmorgan Intrepid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Jpmorgan Intrepid 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 Intrepid will offset losses from the drop in Jpmorgan Intrepid's long position.| Aqr Long-short vs. Auer Growth Fund | Aqr Long-short vs. Archer Balanced Fund | Aqr Long-short vs. Ab Value Fund | Aqr Long-short vs. Qs Growth Fund |
| Jpmorgan Intrepid vs. Jpmorgan Value Advantage | Jpmorgan Intrepid vs. Jpmorgan Equity Income | Jpmorgan Intrepid vs. Jpmorgan Equity Fund | Jpmorgan Intrepid vs. Jpmorgan Emerging Markets |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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