Correlation Between Aqr Equity and Payden Us
Can any of the company-specific risk be diversified away by investing in both Aqr Equity and Payden 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 Equity and Payden Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Equity Market and Payden Government Fund, you can compare the effects of market volatilities on Aqr Equity and Payden 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 Equity with a short position of Payden Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Equity and Payden Us.
Diversification Opportunities for Aqr Equity and Payden Us
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AQR and Payden is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Equity Market and Payden Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Government and Aqr Equity 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 Equity Market are associated (or correlated) with Payden Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Government has no effect on the direction of Aqr Equity i.e., Aqr Equity and Payden Us go up and down completely randomly.
Pair Corralation between Aqr Equity and Payden Us
Assuming the 90 days horizon Aqr Equity Market is expected to generate 2.66 times more return on investment than Payden Us. However, Aqr Equity is 2.66 times more volatile than Payden Government Fund. It trades about 0.46 of its potential returns per unit of risk. Payden Government Fund is currently generating about 0.06 per unit of risk. If you would invest 995.00 in Aqr Equity Market on August 29, 2024 and sell it today you would earn a total of 41.00 from holding Aqr Equity Market or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Equity Market vs. Payden Government Fund
Performance |
| Timeline |
| Aqr Equity Market |
| Payden Government |
Aqr Equity and Payden Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Equity and Payden Us
The main advantage of trading using opposite Aqr Equity and Payden Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Equity position performs unexpectedly, Payden 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 Payden Us will offset losses from the drop in Payden Us' long position.| Aqr Equity vs. Aqr Style Premia | Aqr Equity vs. Aqr International Defensive | Aqr Equity vs. Aqr International Multi Style |
| Payden Us vs. Deutsche Health And | Payden Us vs. Prudential Health Sciences | Payden Us vs. Health Biotchnology Portfolio | Payden Us vs. Blackrock Health Sciences |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |