Correlation Between Voya Target and Aqr Long-short
Can any of the company-specific risk be diversified away by investing in both Voya Target and Aqr Long-short 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 Voya Target and Aqr Long-short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Target Retirement and Aqr Long Short Equity, you can compare the effects of market volatilities on Voya Target and Aqr Long-short 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 Voya Target with a short position of Aqr Long-short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Target and Aqr Long-short.
Diversification Opportunities for Voya Target and Aqr Long-short
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Voya and Aqr is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Voya Target Retirement 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 Voya Target 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 Voya Target Retirement are associated (or correlated) with Aqr Long-short. 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 Voya Target i.e., Voya Target and Aqr Long-short go up and down completely randomly.
Pair Corralation between Voya Target and Aqr Long-short
Assuming the 90 days horizon Voya Target is expected to generate 1.83 times less return on investment than Aqr Long-short. In addition to that, Voya Target is 1.2 times more volatile than Aqr Long Short Equity. It trades about 0.09 of its total potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.2 per unit of volatility. If you would invest 1,283 in Aqr Long Short Equity on November 3, 2024 and sell it today you would earn a total of 341.00 from holding Aqr Long Short Equity or generate 26.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Target Retirement vs. Aqr Long Short Equity
Performance |
| Timeline |
| Voya Target Retirement |
| Aqr Long Short |
Voya Target and Aqr Long-short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Target and Aqr Long-short
The main advantage of trading using opposite Voya Target and Aqr Long-short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Target position performs unexpectedly, Aqr Long-short 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-short will offset losses from the drop in Aqr Long-short's long position.| Voya Target vs. Putnam Retirement Advantage | Voya Target vs. Tiaa Cref Lifecycle Retirement | Voya Target vs. Dimensional Retirement Income | Voya Target vs. Great West Moderately Aggressive |
| Aqr Long-short vs. Hsbc Government Money | Aqr Long-short vs. Federated Government Income | Aqr Long-short vs. Aig Government Money | Aqr Long-short vs. Voya Government Money |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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