Correlation Between Aqr Long-short and Prudential Jennison
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Prudential Jennison 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 Prudential Jennison 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 Prudential Jennison Focused, you can compare the effects of market volatilities on Aqr Long-short and Prudential Jennison 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 Prudential Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Prudential Jennison.
Diversification Opportunities for Aqr Long-short and Prudential Jennison
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aqr and Prudential is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Prudential Jennison Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Jennison 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 Prudential Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Jennison has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Prudential Jennison go up and down completely randomly.
Pair Corralation between Aqr Long-short and Prudential Jennison
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 0.35 times more return on investment than Prudential Jennison. However, Aqr Long Short Equity is 2.87 times less risky than Prudential Jennison. It trades about 0.3 of its potential returns per unit of risk. Prudential Jennison Focused is currently generating about 0.02 per unit of risk. If you would invest 1,573 in Aqr Long Short Equity on October 25, 2024 and sell it today you would earn a total of 40.00 from holding Aqr Long Short Equity or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Prudential Jennison Focused
Performance |
| Timeline |
| Aqr Long Short |
| Prudential Jennison |
Aqr Long-short and Prudential Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and Prudential Jennison
The main advantage of trading using opposite Aqr Long-short and Prudential Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Prudential Jennison 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 Prudential Jennison will offset losses from the drop in Prudential Jennison's long position.| Aqr Long-short vs. Energy Services Fund | Aqr Long-short vs. Hennessy Bp Energy | Aqr Long-short vs. Fidelity Advisor Energy | Aqr Long-short vs. Pimco Energy Tactical |
| Prudential Jennison vs. Dreyfusstandish Global Fixed | Prudential Jennison vs. Morningstar Defensive Bond | Prudential Jennison vs. Blrc Sgy Mnp | Prudential Jennison vs. Alliancebernstein Bond |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |