Correlation Between Aqr Long and Allianzgi Nfj
Can any of the company-specific risk be diversified away by investing in both Aqr Long and Allianzgi Nfj 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 Allianzgi Nfj 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 Allianzgi Nfj Small Cap, you can compare the effects of market volatilities on Aqr Long and Allianzgi Nfj 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 Allianzgi Nfj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long and Allianzgi Nfj.
Diversification Opportunities for Aqr Long and Allianzgi Nfj
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Allianzgi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Allianzgi Nfj Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Small 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 Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Small has no effect on the direction of Aqr Long i.e., Aqr Long and Allianzgi Nfj go up and down completely randomly.
Pair Corralation between Aqr Long and Allianzgi Nfj
Assuming the 90 days horizon Aqr Long is expected to generate 1.72 times less return on investment than Allianzgi Nfj. But when comparing it to its historical volatility, Aqr Long Short Equity is 3.18 times less risky than Allianzgi Nfj. It trades about 0.49 of its potential returns per unit of risk. Allianzgi Nfj Small Cap is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,624 in Allianzgi Nfj Small Cap on September 4, 2024 and sell it today you would earn a total of 131.00 from holding Allianzgi Nfj Small Cap or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Allianzgi Nfj Small Cap
Performance |
| Timeline |
| Aqr Long Short |
| Allianzgi Nfj Small |
Aqr Long and Allianzgi Nfj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long and Allianzgi Nfj
The main advantage of trading using opposite Aqr Long and Allianzgi Nfj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long position performs unexpectedly, Allianzgi Nfj 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 Allianzgi Nfj will offset losses from the drop in Allianzgi Nfj's long position.| Aqr Long vs. Salient Mlp Energy | Aqr Long vs. Gmo Resources | Aqr Long vs. Firsthand Alternative Energy | Aqr Long vs. Franklin Natural Resources |
| Allianzgi Nfj vs. Chase Growth Fund | Allianzgi Nfj vs. Qs Growth Fund | Allianzgi Nfj vs. Champlain Mid Cap | Allianzgi Nfj vs. Goldman Sachs Growth |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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