Correlation Between Aqr Long and Kopernik Global
Can any of the company-specific risk be diversified away by investing in both Aqr Long and Kopernik 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 Kopernik 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 Kopernik Global All Cap, you can compare the effects of market volatilities on Aqr Long and Kopernik 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 Kopernik Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long and Kopernik Global.
Diversification Opportunities for Aqr Long and Kopernik Global
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Kopernik is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Kopernik Global All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopernik Global All 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 Kopernik Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopernik Global All has no effect on the direction of Aqr Long i.e., Aqr Long and Kopernik Global go up and down completely randomly.
Pair Corralation between Aqr Long and Kopernik Global
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 0.6 times more return on investment than Kopernik Global. However, Aqr Long Short Equity is 1.67 times less risky than Kopernik Global. It trades about 0.49 of its potential returns per unit of risk. Kopernik Global All Cap is currently generating about -0.15 per unit of risk. If you would invest 1,579 in Aqr Long Short Equity on September 3, 2024 and sell it today you would earn a total of 71.00 from holding Aqr Long Short Equity or generate 4.5% 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. Kopernik Global All Cap
Performance |
| Timeline |
| Aqr Long Short |
| Kopernik Global All |
Aqr Long and Kopernik Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long and Kopernik Global
The main advantage of trading using opposite Aqr Long and Kopernik Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long position performs unexpectedly, Kopernik 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 Kopernik Global will offset losses from the drop in Kopernik Global's long position.| Aqr Long vs. T Rowe Price | Aqr Long vs. Vanguard California Long Term | Aqr Long vs. Transamerica Funds | Aqr Long vs. Nuveen Minnesota Municipal |
| Kopernik Global vs. Msift High Yield | Kopernik Global vs. Goldman Sachs High | Kopernik Global vs. Virtus High Yield | Kopernik Global vs. Fidelity Capital Income |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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