Correlation Between Sentinel Small and Aqr Long
Can any of the company-specific risk be diversified away by investing in both Sentinel Small and Aqr Long 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 Sentinel Small and Aqr Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentinel Small Pany and Aqr Long Short Equity, you can compare the effects of market volatilities on Sentinel Small and Aqr Long 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 Sentinel Small with a short position of Aqr Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentinel Small and Aqr Long.
Diversification Opportunities for Sentinel Small and Aqr Long
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sentinel and Aqr is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sentinel Small Pany and Aqr Long Short Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Long Short and Sentinel 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 Sentinel Small Pany are associated (or correlated) with Aqr Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Long Short has no effect on the direction of Sentinel Small i.e., Sentinel Small and Aqr Long go up and down completely randomly.
Pair Corralation between Sentinel Small and Aqr Long
Assuming the 90 days horizon Sentinel Small Pany is expected to generate 2.27 times more return on investment than Aqr Long. However, Sentinel Small is 2.27 times more volatile than Aqr Long Short Equity. It trades about 0.08 of its potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.13 per unit of risk. If you would invest 665.00 in Sentinel Small Pany on September 14, 2024 and sell it today you would earn a total of 73.00 from holding Sentinel Small Pany or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sentinel Small Pany vs. Aqr Long Short Equity
Performance |
| Timeline |
| Sentinel Small Pany |
| Aqr Long Short |
Sentinel Small and Aqr Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentinel Small and Aqr Long
The main advantage of trading using opposite Sentinel Small and Aqr Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentinel Small position performs unexpectedly, Aqr Long 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 Aqr Long will offset losses from the drop in Aqr Long's long position.| Sentinel Small vs. William Blair Small | Sentinel Small vs. Great West Loomis Sayles | Sentinel Small vs. Lsv Small Cap | Sentinel Small vs. Amg River Road |
| Aqr Long vs. Precious Metals And | Aqr Long vs. Invesco Gold Special | Aqr Long vs. Europac Gold Fund | Aqr Long vs. Fidelity Advisor Gold |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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