Correlation Between Aqr Long and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Aqr Long and Loomis Sayles 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 Loomis Sayles 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 Loomis Sayles Bond, you can compare the effects of market volatilities on Aqr Long and Loomis Sayles 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 Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long and Loomis Sayles.
Diversification Opportunities for Aqr Long and Loomis Sayles
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Loomis is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Loomis Sayles Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles 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 Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Bond has no effect on the direction of Aqr Long i.e., Aqr Long and Loomis Sayles go up and down completely randomly.
Pair Corralation between Aqr Long and Loomis Sayles
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 1.31 times more return on investment than Loomis Sayles. However, Aqr Long is 1.31 times more volatile than Loomis Sayles Bond. It trades about 0.22 of its potential returns per unit of risk. Loomis Sayles Bond is currently generating about 0.09 per unit of risk. If you would invest 1,162 in Aqr Long Short Equity on September 12, 2024 and sell it today you would earn a total of 501.00 from holding Aqr Long Short Equity or generate 43.12% 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. Loomis Sayles Bond
Performance |
| Timeline |
| Aqr Long Short |
| Loomis Sayles Bond |
Aqr Long and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long and Loomis Sayles
The main advantage of trading using opposite Aqr Long and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Aqr Long vs. Diamond Hill Long Short | Aqr Long vs. Pimco Rae Worldwide | Aqr Long vs. SCOR PK | Aqr Long vs. Morningstar Unconstrained Allocation |
| Loomis Sayles vs. Easterly Snow Longshort | Loomis Sayles vs. Aqr Long Short Equity | Loomis Sayles vs. Angel Oak Ultrashort | Loomis Sayles vs. Quantitative Longshort 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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