Correlation Between Aqr Sustainable and Nuveen Small
Can any of the company-specific risk be diversified away by investing in both Aqr Sustainable and Nuveen Small 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 Sustainable and Nuveen Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Sustainable Long Short and Nuveen Small Cap, you can compare the effects of market volatilities on Aqr Sustainable and Nuveen Small 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 Sustainable with a short position of Nuveen Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Sustainable and Nuveen Small.
Diversification Opportunities for Aqr Sustainable and Nuveen Small
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AQR and Nuveen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Sustainable Long Short and Nuveen Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Small Cap and Aqr Sustainable 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 Sustainable Long Short are associated (or correlated) with Nuveen Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Small Cap has no effect on the direction of Aqr Sustainable i.e., Aqr Sustainable and Nuveen Small go up and down completely randomly.
Pair Corralation between Aqr Sustainable and Nuveen Small
Assuming the 90 days horizon Aqr Sustainable is expected to generate 2.74 times less return on investment than Nuveen Small. But when comparing it to its historical volatility, Aqr Sustainable Long Short is 2.04 times less risky than Nuveen Small. It trades about 0.25 of its potential returns per unit of risk. Nuveen Small Cap is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,503 in Nuveen Small Cap on September 2, 2024 and sell it today you would earn a total of 182.00 from holding Nuveen Small Cap or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Sustainable Long Short vs. Nuveen Small Cap
Performance |
| Timeline |
| Aqr Sustainable Long |
| Nuveen Small Cap |
Aqr Sustainable and Nuveen Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Sustainable and Nuveen Small
The main advantage of trading using opposite Aqr Sustainable and Nuveen Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Sustainable position performs unexpectedly, Nuveen Small 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 Nuveen Small will offset losses from the drop in Nuveen Small's long position.| Aqr Sustainable vs. Pimco Funds | Aqr Sustainable vs. Prudential Government Money | Aqr Sustainable vs. Aim Investment Secs | Aqr Sustainable vs. Dreyfus Institutional Reserves |
| Nuveen Small vs. Alpsalerian Energy Infrastructure | Nuveen Small vs. Jennison Natural Resources | Nuveen Small vs. Short Oil Gas | Nuveen Small vs. Energy Basic Materials |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |