Correlation Between Vanguard Global and Aqr Global
Can any of the company-specific risk be diversified away by investing in both Vanguard Global 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 Vanguard Global and Aqr Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Global Credit and Aqr Global Macro, you can compare the effects of market volatilities on Vanguard Global 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 Vanguard Global with a short position of Aqr Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Global and Aqr Global.
Diversification Opportunities for Vanguard Global and Aqr Global
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vanguard and Aqr is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Global Credit 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 Vanguard Global 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 Vanguard Global Credit 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 Vanguard Global i.e., Vanguard Global and Aqr Global go up and down completely randomly.
Pair Corralation between Vanguard Global and Aqr Global
Assuming the 90 days horizon Vanguard Global Credit is expected to generate 0.47 times more return on investment than Aqr Global. However, Vanguard Global Credit is 2.14 times less risky than Aqr Global. It trades about 0.09 of its potential returns per unit of risk. Aqr Global Macro is currently generating about 0.01 per unit of risk. If you would invest 1,802 in Vanguard Global Credit on November 3, 2024 and sell it today you would earn a total of 101.00 from holding Vanguard Global Credit or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Global Credit vs. Aqr Global Macro
Performance |
| Timeline |
| Vanguard Global Credit |
| Aqr Global Macro |
Vanguard Global and Aqr Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Global and Aqr Global
The main advantage of trading using opposite Vanguard Global and Aqr Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Global 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.| Vanguard Global vs. Smallcap World Fund | Vanguard Global vs. Gmo Global Equity | Vanguard Global vs. Enhanced Fixed Income | Vanguard Global vs. Old Westbury Fixed |
| Aqr Global vs. Western Assets Emerging | Aqr Global vs. Angel Oak Multi Strategy | Aqr Global vs. Nasdaq 100 2x Strategy | Aqr Global vs. Doubleline Emerging Markets |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |