Correlation Between Aqr Long-short and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Amg Managers 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 Amg Managers 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 Amg Managers Centersquare, you can compare the effects of market volatilities on Aqr Long-short and Amg Managers 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 Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Amg Managers.
Diversification Opportunities for Aqr Long-short and Amg Managers
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Amg is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Amg Managers Centersquare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Centersquare 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 Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Centersquare has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Amg Managers go up and down completely randomly.
Pair Corralation between Aqr Long-short and Amg Managers
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 0.54 times more return on investment than Amg Managers. However, Aqr Long Short Equity is 1.86 times less risky than Amg Managers. It trades about 0.19 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about 0.08 per unit of risk. If you would invest 1,555 in Aqr Long Short Equity on August 31, 2024 and sell it today you would earn a total of 84.00 from holding Aqr Long Short Equity or generate 5.4% 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. Amg Managers Centersquare
Performance |
| Timeline |
| Aqr Long Short |
| Amg Managers Centersquare |
Aqr Long-short and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and Amg Managers
The main advantage of trading using opposite Aqr Long-short and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Aqr Long-short vs. L Abbett Growth | Aqr Long-short vs. Growth Opportunities Fund | Aqr Long-short vs. T Rowe Price | Aqr Long-short vs. Chase Growth Fund |
| Amg Managers vs. Calamos Dynamic Convertible | Amg Managers vs. Fidelity Sai Convertible | Amg Managers vs. Harbor Vertible Securities | Amg Managers vs. Columbia Vertible Securities |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Transaction History View history of all your transactions and understand their impact on performance |