Correlation Between Aqr International and Guggenheim Diversified

Can any of the company-specific risk be diversified away by investing in both Aqr International and Guggenheim Diversified 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 Aqr International and Guggenheim Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aqr International Momentum and Guggenheim Diversified Income, you can compare the effects of market volatilities on Aqr International and Guggenheim Diversified 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 Aqr International with a short position of Guggenheim Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr International and Guggenheim Diversified.

Diversification Opportunities for Aqr International and Guggenheim Diversified

0.0

Correlation Coefficient

Aqr International  Guggenheim Diversified

Pay attention - limited upside

The 3 months correlation between Aqr and Guggenheim is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aqr International Momentum and Guggenheim Diversified Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Diversified and Aqr International 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 Aqr International Momentum are associated (or correlated) with Guggenheim Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Diversified has no effect on the direction of Aqr International i.e., Aqr International and Guggenheim Diversified go up and down completely randomly.

Pair Corralation between Aqr International and Guggenheim Diversified

If you would invest  1,415  in Aqr International Momentum on December 21, 2024 and sell it today you would earn a total of  145.00  from holding Aqr International Momentum or generate 10.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	54.24%
Values	Daily Returns

Aqr International Momentum  vs.  Guggenheim Diversified Income

Aqr International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aqr International Momentum are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Aqr International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Guggenheim Diversified

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guggenheim Diversified Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Guggenheim Diversified is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aqr International and Guggenheim Diversified

The main advantage of trading using opposite Aqr International and Guggenheim Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr International position performs unexpectedly, Guggenheim Diversified 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 Guggenheim Diversified will offset losses from the drop in Guggenheim Diversified's long position.

The idea behind Aqr International Momentum and Guggenheim Diversified Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.