Correlation Between Aqr Small and Hartford Small
Can any of the company-specific risk be diversified away by investing in both Aqr Small and Hartford Small 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 Small and Hartford Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Small Cap and The Hartford Small, you can compare the effects of market volatilities on Aqr Small and Hartford Small 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 Small with a short position of Hartford Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Small and Hartford Small.
Diversification Opportunities for Aqr Small and Hartford Small
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aqr and Hartford is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Small Cap and The Hartford Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small and Aqr Small 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 Small Cap are associated (or correlated) with Hartford Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Small has no effect on the direction of Aqr Small i.e., Aqr Small and Hartford Small go up and down completely randomly.
Pair Corralation between Aqr Small and Hartford Small
Assuming the 90 days horizon Aqr Small Cap is expected to generate 1.26 times more return on investment than Hartford Small. However, Aqr Small is 1.26 times more volatile than The Hartford Small. It trades about 0.07 of its potential returns per unit of risk. The Hartford Small is currently generating about 0.07 per unit of risk. If you would invest 1,542 in Aqr Small Cap on September 12, 2024 and sell it today you would earn a total of 521.00 from holding Aqr Small Cap or generate 33.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Small Cap vs. The Hartford Small
Performance |
| Timeline |
| Aqr Small Cap |
| Hartford Small |
Aqr Small and Hartford Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Small and Hartford Small
The main advantage of trading using opposite Aqr Small and Hartford Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Small position performs unexpectedly, Hartford Small 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 Hartford Small will offset losses from the drop in Hartford Small's long position.| Aqr Small vs. Dunham Large Cap | Aqr Small vs. Jhancock Disciplined Value | Aqr Small vs. Fidelity Series 1000 | Aqr Small vs. Dana Large Cap |
| Hartford Small vs. Aqr Small Cap | Hartford Small vs. Old Westbury Small | Hartford Small vs. Ab Small Cap | Hartford Small vs. Small Pany Growth |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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