Correlation Between Aqr Sustainable and First Eagle
Can any of the company-specific risk be diversified away by investing in both Aqr Sustainable and First Eagle 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 First Eagle 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 First Eagle Global, you can compare the effects of market volatilities on Aqr Sustainable and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Sustainable and First Eagle.
Diversification Opportunities for Aqr Sustainable and First Eagle
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aqr and First is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Sustainable Long Short and First Eagle Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Global 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Global has no effect on the direction of Aqr Sustainable i.e., Aqr Sustainable and First Eagle go up and down completely randomly.
Pair Corralation between Aqr Sustainable and First Eagle
Assuming the 90 days horizon Aqr Sustainable is expected to generate 3.44 times less return on investment than First Eagle. In addition to that, Aqr Sustainable is 2.0 times more volatile than First Eagle Global. It trades about 0.05 of its total potential returns per unit of risk. First Eagle Global is currently generating about 0.35 per unit of volatility. If you would invest 1,299 in First Eagle Global on November 1, 2024 and sell it today you would earn a total of 39.00 from holding First Eagle Global or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Aqr Sustainable Long Short vs. First Eagle Global
Performance |
| Timeline |
| Aqr Sustainable Long |
| First Eagle Global |
Aqr Sustainable and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Sustainable and First Eagle
The main advantage of trading using opposite Aqr Sustainable and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Sustainable position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Aqr Sustainable vs. Pace Municipal Fixed | Aqr Sustainable vs. Blrc Sgy Mnp | Aqr Sustainable vs. Bbh Intermediate Municipal | Aqr Sustainable vs. Alpine Ultra Short |
| First Eagle vs. Aqr Sustainable Long Short | First Eagle vs. Saat Market Growth | First Eagle vs. Fidelity New Markets | First Eagle vs. Doubleline Emerging Markets |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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