Correlation Between Aqr Alternative and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Aqr Alternative and Legg Mason 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 Legg Mason 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 Legg Mason Global, you can compare the effects of market volatilities on Aqr Alternative and Legg Mason 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 Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Alternative and Legg Mason.
Diversification Opportunities for Aqr Alternative and Legg Mason
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqr and Legg is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Alternative Risk and Legg Mason Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason Global 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 Legg Mason. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legg Mason Global has no effect on the direction of Aqr Alternative i.e., Aqr Alternative and Legg Mason go up and down completely randomly.
Pair Corralation between Aqr Alternative and Legg Mason
Assuming the 90 days horizon Aqr Alternative Risk is expected to generate 3.09 times more return on investment than Legg Mason. However, Aqr Alternative is 3.09 times more volatile than Legg Mason Global. It trades about 0.14 of its potential returns per unit of risk. Legg Mason Global is currently generating about 0.26 per unit of risk. If you would invest 1,129 in Aqr Alternative Risk on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Aqr Alternative Risk or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aqr Alternative Risk vs. Legg Mason Global
Performance |
| Timeline |
| Aqr Alternative Risk |
| Legg Mason Global |
Aqr Alternative and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Alternative and Legg Mason
The main advantage of trading using opposite Aqr Alternative and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Alternative position performs unexpectedly, Legg Mason 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 Legg Mason will offset losses from the drop in Legg Mason's long position.| Aqr Alternative vs. Barings Emerging Markets | Aqr Alternative vs. Artisan Emerging Markets | Aqr Alternative vs. Pnc Emerging Markets | Aqr Alternative vs. Siit Emerging Markets |
| Legg Mason vs. Calamos Global Equity | Legg Mason vs. Gmo Global Equity | Legg Mason vs. Qs Global Equity | Legg Mason vs. Touchstone International 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |