Correlation Between Aqr Long-short and Siit Us
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Siit Us 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 Siit Us 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 Siit Equity Factor, you can compare the effects of market volatilities on Aqr Long-short and Siit Us 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 Siit Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Siit Us.
Diversification Opportunities for Aqr Long-short and Siit Us
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Siit is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Siit Equity Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Equity Factor 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 Siit Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Equity Factor has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Siit Us go up and down completely randomly.
Pair Corralation between Aqr Long-short and Siit Us
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 0.23 times more return on investment than Siit Us. However, Aqr Long Short Equity is 4.32 times less risky than Siit Us. It trades about 0.22 of its potential returns per unit of risk. Siit Equity Factor is currently generating about -0.21 per unit of risk. If you would invest 1,553 in Aqr Long Short Equity on October 10, 2024 and sell it today you would earn a total of 33.00 from holding Aqr Long Short Equity or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Siit Equity Factor
Performance |
| Timeline |
| Aqr Long Short |
| Siit Equity Factor |
Aqr Long-short and Siit Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and Siit Us
The main advantage of trading using opposite Aqr Long-short and Siit Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Siit Us 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 Siit Us will offset losses from the drop in Siit Us' long position.| Aqr Long-short vs. Pace Large Growth | Aqr Long-short vs. Rbc Global Equity | Aqr Long-short vs. Alternative Asset Allocation | Aqr Long-short vs. Qs Global Equity |
| Siit Us vs. Pace International Equity | Siit Us vs. Morningstar International Equity | Siit Us vs. Guidemark E Fixed | Siit Us vs. Franklin Equity Income |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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