Correlation Between Stringer Growth and Aqr Global
Can any of the company-specific risk be diversified away by investing in both Stringer Growth and Aqr 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 Stringer Growth and Aqr Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stringer Growth Fund and Aqr Global Macro, you can compare the effects of market volatilities on Stringer Growth and Aqr 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 Stringer Growth with a short position of Aqr Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stringer Growth and Aqr Global.
Diversification Opportunities for Stringer Growth and Aqr Global
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stringer and Aqr is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Stringer Growth Fund and Aqr Global Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Global Macro and Stringer Growth 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 Stringer Growth Fund are associated (or correlated) with Aqr Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Global Macro has no effect on the direction of Stringer Growth i.e., Stringer Growth and Aqr Global go up and down completely randomly.
Pair Corralation between Stringer Growth and Aqr Global
Assuming the 90 days horizon Stringer Growth Fund is expected to generate 0.92 times more return on investment than Aqr Global. However, Stringer Growth Fund is 1.09 times less risky than Aqr Global. It trades about 0.06 of its potential returns per unit of risk. Aqr Global Macro is currently generating about 0.0 per unit of risk. If you would invest 1,078 in Stringer Growth Fund on November 2, 2024 and sell it today you would earn a total of 192.00 from holding Stringer Growth Fund or generate 17.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stringer Growth Fund vs. Aqr Global Macro
Performance |
| Timeline |
| Stringer Growth |
| Aqr Global Macro |
Stringer Growth and Aqr Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stringer Growth and Aqr Global
The main advantage of trading using opposite Stringer Growth and Aqr Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stringer Growth position performs unexpectedly, Aqr 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 Aqr Global will offset losses from the drop in Aqr Global's long position.| Stringer Growth vs. Dreyfusstandish Global Fixed | Stringer Growth vs. Aqr Global Macro | Stringer Growth vs. Investec Global Franchise | Stringer Growth vs. Mirova Global Green |
| Aqr Global vs. Catalystmillburn Hedge Strategy | Aqr Global vs. Catalystmillburn Hedge Strategy | Aqr Global vs. Catalystmillburn Hedge Strategy | Aqr Global vs. Catalystmillburn Hedge Strategy |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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