Correlation Between Aqr Sustainable and American Beacon
Can any of the company-specific risk be diversified away by investing in both Aqr Sustainable and American Beacon 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 American Beacon 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 American Beacon Glg, you can compare the effects of market volatilities on Aqr Sustainable and American Beacon 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 American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Sustainable and American Beacon.
Diversification Opportunities for Aqr Sustainable and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aqr and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Sustainable Long Short and American Beacon Glg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Glg 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 American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Glg has no effect on the direction of Aqr Sustainable i.e., Aqr Sustainable and American Beacon go up and down completely randomly.
Pair Corralation between Aqr Sustainable and American Beacon
If you would invest 1,206 in Aqr Sustainable Long Short on November 2, 2024 and sell it today you would earn a total of 130.00 from holding Aqr Sustainable Long Short or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Aqr Sustainable Long Short vs. American Beacon Glg
Performance |
| Timeline |
| Aqr Sustainable Long |
| American Beacon Glg |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aqr Sustainable and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Sustainable and American Beacon
The main advantage of trading using opposite Aqr Sustainable and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Sustainable position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Aqr Sustainable vs. Small Cap Growth | Aqr Sustainable vs. Riverparknext Century Growth | Aqr Sustainable vs. L Abbett Growth | Aqr Sustainable vs. Needham Aggressive Growth |
| American Beacon vs. Qs Global Equity | American Beacon vs. T Rowe Price | American Beacon vs. Small Cap Equity | American Beacon vs. Gmo Global Equity |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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