Correlation Between Aqr Alternative and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Aqr Alternative and Barings Emerging 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 Alternative and Barings Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Alternative Risk and Barings Emerging Markets, you can compare the effects of market volatilities on Aqr Alternative and Barings Emerging 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 Alternative with a short position of Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Alternative and Barings Emerging.
Diversification Opportunities for Aqr Alternative and Barings Emerging
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aqr and Barings is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Alternative Risk and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets and Aqr Alternative 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 Alternative Risk are associated (or correlated) with Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of Aqr Alternative i.e., Aqr Alternative and Barings Emerging go up and down completely randomly.
Pair Corralation between Aqr Alternative and Barings Emerging
Assuming the 90 days horizon Aqr Alternative Risk is expected to generate 2.08 times more return on investment than Barings Emerging. However, Aqr Alternative is 2.08 times more volatile than Barings Emerging Markets. It trades about 0.1 of its potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.04 per unit of risk. If you would invest 975.00 in Aqr Alternative Risk on September 14, 2024 and sell it today you would earn a total of 174.00 from holding Aqr Alternative Risk or generate 17.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Alternative Risk vs. Barings Emerging Markets
Performance |
| Timeline |
| Aqr Alternative Risk |
| Barings Emerging Markets |
Aqr Alternative and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Alternative and Barings Emerging
The main advantage of trading using opposite Aqr Alternative and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Alternative position performs unexpectedly, Barings Emerging 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 Barings Emerging will offset losses from the drop in Barings Emerging's long position.| Aqr Alternative vs. Gabelli Convertible And | Aqr Alternative vs. Virtus Convertible | Aqr Alternative vs. Lord Abbett Convertible | Aqr Alternative vs. Calamos Dynamic Convertible |
| Barings Emerging vs. Clearbridge Energy Mlp | Barings Emerging vs. Dreyfus Natural Resources | Barings Emerging vs. Jennison Natural Resources | Barings Emerging vs. Calvert Global Energy |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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