Correlation Between Western Assets and Aqr Multi-strategy
Can any of the company-specific risk be diversified away by investing in both Western Assets and Aqr Multi-strategy 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 Western Assets and Aqr Multi-strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Assets Emerging and Aqr Multi Strategy Alternative, you can compare the effects of market volatilities on Western Assets and Aqr Multi-strategy 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 Western Assets with a short position of Aqr Multi-strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Assets and Aqr Multi-strategy.
Diversification Opportunities for Western Assets and Aqr Multi-strategy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Aqr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Assets Emerging and Aqr Multi Strategy Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Multi Strategy and Western Assets 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 Western Assets Emerging are associated (or correlated) with Aqr Multi-strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Multi Strategy has no effect on the direction of Western Assets i.e., Western Assets and Aqr Multi-strategy go up and down completely randomly.
Pair Corralation between Western Assets and Aqr Multi-strategy
If you would invest 1,067 in Western Assets Emerging on August 27, 2024 and sell it today you would earn a total of 2.00 from holding Western Assets Emerging or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Western Assets Emerging vs. Aqr Multi Strategy Alternative
Performance |
| Timeline |
| Western Assets Emerging |
| Aqr Multi Strategy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Assets and Aqr Multi-strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Assets and Aqr Multi-strategy
The main advantage of trading using opposite Western Assets and Aqr Multi-strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Assets position performs unexpectedly, Aqr Multi-strategy 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 Multi-strategy will offset losses from the drop in Aqr Multi-strategy's long position.| Western Assets vs. Moderately Aggressive Balanced | Western Assets vs. Wisdomtree Siegel Moderate | Western Assets vs. Pgim Conservative Retirement | Western Assets vs. Lifestyle Ii Moderate |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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