Correlation Between Aqr Long-short and New World
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and New World 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 New World 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 New World Fund, you can compare the effects of market volatilities on Aqr Long-short and New World 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 New World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and New World.
Diversification Opportunities for Aqr Long-short and New World
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and New is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and New World Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New World Fund 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 New World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New World Fund has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and New World go up and down completely randomly.
Pair Corralation between Aqr Long-short and New World
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 0.72 times more return on investment than New World. However, Aqr Long Short Equity is 1.39 times less risky than New World. It trades about 0.18 of its potential returns per unit of risk. New World Fund is currently generating about 0.06 per unit of risk. If you would invest 1,032 in Aqr Long Short Equity on August 26, 2024 and sell it today you would earn a total of 614.00 from holding Aqr Long Short Equity or generate 59.5% 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. New World Fund
Performance |
| Timeline |
| Aqr Long Short |
| New World Fund |
Aqr Long-short and New World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and New World
The main advantage of trading using opposite Aqr Long-short and New World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, New World 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 New World will offset losses from the drop in New World'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 |
| New World vs. California Bond Fund | New World vs. Chartwell Short Duration | New World vs. Rbc Bluebay Global | New World vs. Bbh Intermediate Municipal |
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.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |