Correlation Between Aqr Sustainable and Ivy Apollo

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Can any of the company-specific risk be diversified away by investing in both Aqr Sustainable and Ivy Apollo 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 Ivy Apollo 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 Ivy Apollo Multi Asset, you can compare the effects of market volatilities on Aqr Sustainable and Ivy Apollo 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 Ivy Apollo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Sustainable and Ivy Apollo.

Diversification Opportunities for Aqr Sustainable and Ivy Apollo

AqrIvyDiversified AwayAqrIvyDiversified Away100%
-0.09
  Correlation Coefficient

Good diversification

The 3 months correlation between Aqr and Ivy is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Sustainable Long Short and Ivy Apollo Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Apollo Multi 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 Ivy Apollo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Apollo Multi has no effect on the direction of Aqr Sustainable i.e., Aqr Sustainable and Ivy Apollo go up and down completely randomly.

Pair Corralation between Aqr Sustainable and Ivy Apollo

Assuming the 90 days horizon Aqr Sustainable Long Short is expected to generate 1.67 times more return on investment than Ivy Apollo. However, Aqr Sustainable is 1.67 times more volatile than Ivy Apollo Multi Asset. It trades about 0.2 of its potential returns per unit of risk. Ivy Apollo Multi Asset is currently generating about 0.06 per unit of risk. If you would invest  1,336  in Aqr Sustainable Long Short on November 30, 2024 and sell it today you would earn a total of  41.00  from holding Aqr Sustainable Long Short or generate 3.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Aqr Sustainable Long Short  vs.  Ivy Apollo Multi Asset

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -50510
JavaScript chart by amCharts 3.21.15QNZIX IMACX
       Timeline  
Aqr Sustainable Long 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Aqr Sustainable Long Short are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Aqr Sustainable is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb12.81313.213.413.613.81414.2
Ivy Apollo Multi 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Ivy Apollo Multi Asset has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Ivy Apollo is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb9.29.39.49.59.69.7

Aqr Sustainable and Ivy Apollo Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.38-1.79-1.2-0.61-0.01990.61.231.872.53.13 0.51.01.5
JavaScript chart by amCharts 3.21.15QNZIX IMACX
       Returns  

Pair Trading with Aqr Sustainable and Ivy Apollo

The main advantage of trading using opposite Aqr Sustainable and Ivy Apollo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Sustainable position performs unexpectedly, Ivy Apollo 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 Ivy Apollo will offset losses from the drop in Ivy Apollo's long position.
The idea behind Aqr Sustainable Long Short and Ivy Apollo Multi Asset pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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