Correlation Between Aqr Long and Allianzgi Health
Can any of the company-specific risk be diversified away by investing in both Aqr Long and Allianzgi Health 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 Health 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 Health Sciences, you can compare the effects of market volatilities on Aqr Long and Allianzgi Health 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 Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long and Allianzgi Health.
Diversification Opportunities for Aqr Long and Allianzgi Health
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aqr and Allianzgi is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Allianzgi Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Health Sciences 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 Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Health Sciences has no effect on the direction of Aqr Long i.e., Aqr Long and Allianzgi Health go up and down completely randomly.
Pair Corralation between Aqr Long and Allianzgi Health
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 0.57 times more return on investment than Allianzgi Health. However, Aqr Long Short Equity is 1.77 times less risky than Allianzgi Health. It trades about 0.2 of its potential returns per unit of risk. Allianzgi Health Sciences is currently generating about 0.04 per unit of risk. If you would invest 1,310 in Aqr Long Short Equity on September 4, 2024 and sell it today you would earn a total of 340.00 from holding Aqr Long Short Equity or generate 25.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Allianzgi Health Sciences
Performance |
| Timeline |
| Aqr Long Short |
| Allianzgi Health Sciences |
Aqr Long and Allianzgi Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long and Allianzgi Health
The main advantage of trading using opposite Aqr Long and Allianzgi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long position performs unexpectedly, Allianzgi Health 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 Health will offset losses from the drop in Allianzgi Health'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 |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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