Correlation Between Alliancebernstein and Aqr Global
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein 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 Alliancebernstein and Aqr Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein Global Highome and Aqr Global Macro, you can compare the effects of market volatilities on Alliancebernstein 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 Alliancebernstein with a short position of Aqr Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Aqr Global.
Diversification Opportunities for Alliancebernstein and Aqr Global
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alliancebernstein and Aqr is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global Higho 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 Alliancebernstein 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 Alliancebernstein Global Highome 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 Alliancebernstein i.e., Alliancebernstein and Aqr Global go up and down completely randomly.
Pair Corralation between Alliancebernstein and Aqr Global
Assuming the 90 days horizon Alliancebernstein Global Highome is expected to under-perform the Aqr Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Alliancebernstein Global Highome is 2.78 times less risky than Aqr Global. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Aqr Global Macro is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 925.00 in Aqr Global Macro on October 24, 2024 and sell it today you would earn a total of 25.00 from holding Aqr Global Macro or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein Global Higho vs. Aqr Global Macro
Performance |
| Timeline |
| Alliancebernstein |
| Aqr Global Macro |
Alliancebernstein and Aqr Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Aqr Global
The main advantage of trading using opposite Alliancebernstein and Aqr Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein 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.| Alliancebernstein vs. Saat Defensive Strategy | Alliancebernstein vs. Western Assets Emerging | Alliancebernstein vs. Siit Emerging Markets | Alliancebernstein vs. Eagle Mlp Strategy |
| Aqr Global vs. Lord Abbett Short | Aqr Global vs. Transamerica High Yield | Aqr Global vs. Fidelity Focused High | Aqr Global vs. Siit High Yield |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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