Correlation Between Aqr Long-short and Natixis Oakmark
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Natixis Oakmark 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 Natixis Oakmark 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 Natixis Oakmark Intl, you can compare the effects of market volatilities on Aqr Long-short and Natixis Oakmark 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 Natixis Oakmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Natixis Oakmark.
Diversification Opportunities for Aqr Long-short and Natixis Oakmark
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aqr and Natixis is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Natixis Oakmark Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Intl 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 Natixis Oakmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Oakmark Intl has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Natixis Oakmark go up and down completely randomly.
Pair Corralation between Aqr Long-short and Natixis Oakmark
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 0.39 times more return on investment than Natixis Oakmark. However, Aqr Long Short Equity is 2.56 times less risky than Natixis Oakmark. It trades about 0.53 of its potential returns per unit of risk. Natixis Oakmark Intl is currently generating about -0.06 per unit of risk. If you would invest 1,569 in Aqr Long Short Equity on September 1, 2024 and sell it today you would earn a total of 81.00 from holding Aqr Long Short Equity or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Natixis Oakmark Intl
Performance |
| Timeline |
| Aqr Long Short |
| Natixis Oakmark Intl |
Aqr Long-short and Natixis Oakmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and Natixis Oakmark
The main advantage of trading using opposite Aqr Long-short and Natixis Oakmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Natixis Oakmark 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 Natixis Oakmark will offset losses from the drop in Natixis Oakmark's long position.| Aqr Long-short vs. Guggenheim Risk Managed | Aqr Long-short vs. Columbia Real Estate | Aqr Long-short vs. Franklin Real Estate | Aqr Long-short vs. Deutsche Real Estate |
| Natixis Oakmark vs. Prudential Health Sciences | Natixis Oakmark vs. The Gabelli Healthcare | Natixis Oakmark vs. Delaware Healthcare Fund | Natixis Oakmark vs. Invesco Global Health |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |