Correlation Between Aqr Style and Boston Partners
Can any of the company-specific risk be diversified away by investing in both Aqr Style and Boston Partners 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 Style and Boston Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Style Premia and Boston Partners Small, you can compare the effects of market volatilities on Aqr Style and Boston Partners 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 Style with a short position of Boston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Style and Boston Partners.
Diversification Opportunities for Aqr Style and Boston Partners
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqr and Boston is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Style Premia and Boston Partners Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Small and Aqr Style 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 Style Premia are associated (or correlated) with Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Small has no effect on the direction of Aqr Style i.e., Aqr Style and Boston Partners go up and down completely randomly.
Pair Corralation between Aqr Style and Boston Partners
Assuming the 90 days horizon Aqr Style Premia is expected to generate 0.62 times more return on investment than Boston Partners. However, Aqr Style Premia is 1.61 times less risky than Boston Partners. It trades about 0.08 of its potential returns per unit of risk. Boston Partners Small is currently generating about 0.04 per unit of risk. If you would invest 667.00 in Aqr Style Premia on September 12, 2024 and sell it today you would earn a total of 141.00 from holding Aqr Style Premia or generate 21.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Style Premia vs. Boston Partners Small
Performance |
| Timeline |
| Aqr Style Premia |
| Boston Partners Small |
Aqr Style and Boston Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Style and Boston Partners
The main advantage of trading using opposite Aqr Style and Boston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Style position performs unexpectedly, Boston Partners 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 Boston Partners will offset losses from the drop in Boston Partners' long position.| Aqr Style vs. Pnc Emerging Markets | Aqr Style vs. Eagle Mlp Strategy | Aqr Style vs. Shelton Emerging Markets | Aqr Style vs. Pace International Emerging |
| Boston Partners vs. Aggressive Investors 1 | Boston Partners vs. Buffalo Small Cap | Boston Partners vs. Rice Hall James | Boston Partners vs. Putnam Small Cap |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| 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 | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |