Correlation Between Aqr Style and Asg Global
Can any of the company-specific risk be diversified away by investing in both Aqr Style and Asg Global 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 Asg Global 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 Asg Global Alternatives, you can compare the effects of market volatilities on Aqr Style and Asg Global 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 Asg Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Style and Asg Global.
Diversification Opportunities for Aqr Style and Asg Global
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aqr and Asg is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Style Premia and Asg Global Alternatives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Global Alternatives 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 Asg Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Global Alternatives has no effect on the direction of Aqr Style i.e., Aqr Style and Asg Global go up and down completely randomly.
Pair Corralation between Aqr Style and Asg Global
Assuming the 90 days horizon Aqr Style Premia is expected to generate 3.96 times more return on investment than Asg Global. However, Aqr Style is 3.96 times more volatile than Asg Global Alternatives. It trades about 0.05 of its potential returns per unit of risk. Asg Global Alternatives is currently generating about 0.08 per unit of risk. If you would invest 610.00 in Aqr Style Premia on September 12, 2024 and sell it today you would earn a total of 203.00 from holding Aqr Style Premia or generate 33.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Style Premia vs. Asg Global Alternatives
Performance |
| Timeline |
| Aqr Style Premia |
| Asg Global Alternatives |
Aqr Style and Asg Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Style and Asg Global
The main advantage of trading using opposite Aqr Style and Asg Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Style position performs unexpectedly, Asg Global 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 Asg Global will offset losses from the drop in Asg Global's long position.| Aqr Style vs. Us Strategic Equity | Aqr Style vs. Locorr Dynamic Equity | Aqr Style vs. Us Vector Equity | Aqr Style vs. Calamos Global Equity |
| Asg Global vs. Blackrock Alternative Capital | Asg Global vs. Aqr Style Premia | Asg Global vs. Goldman Sachs Absolute | Asg Global vs. Aquagold International |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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