Correlation Between Aqr Style and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Aqr Style and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Absolute, you can compare the effects of market volatilities on Aqr Style and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Style and Goldman Sachs.
Diversification Opportunities for Aqr Style and Goldman Sachs
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Goldman is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Style Premia and Goldman Sachs Absolute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Absolute 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Absolute has no effect on the direction of Aqr Style i.e., Aqr Style and Goldman Sachs go up and down completely randomly.
Pair Corralation between Aqr Style and Goldman Sachs
Assuming the 90 days horizon Aqr Style Premia is expected to generate 4.46 times more return on investment than Goldman Sachs. However, Aqr Style is 4.46 times more volatile than Goldman Sachs Absolute. It trades about 0.04 of its potential returns per unit of risk. Goldman Sachs Absolute is currently generating about 0.1 per unit of risk. If you would invest 617.00 in Aqr Style Premia on August 28, 2024 and sell it today you would earn a total of 196.00 from holding Aqr Style Premia or generate 31.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Aqr Style Premia vs. Goldman Sachs Absolute
Performance |
| Timeline |
| Aqr Style Premia |
| Goldman Sachs Absolute |
Aqr Style and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Style and Goldman Sachs
The main advantage of trading using opposite Aqr Style and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Style position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Aqr Style vs. Nuveen All American Municipal | Aqr Style vs. T Rowe Price | Aqr Style vs. Morningstar Municipal Bond | Aqr Style vs. Counterpoint Tactical Municipal |
| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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