Correlation Between Aqr Large and Frost Growth

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Aqr Large and Frost Growth 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 Large and Frost Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Large Cap and Frost Growth Equity, you can compare the effects of market volatilities on Aqr Large and Frost Growth 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 Large with a short position of Frost Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Frost Growth.

Diversification Opportunities for Aqr Large and Frost Growth

-0.56
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Aqr and Frost is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and Frost Growth Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frost Growth Equity and Aqr Large 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 Large Cap are associated (or correlated) with Frost Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frost Growth Equity has no effect on the direction of Aqr Large i.e., Aqr Large and Frost Growth go up and down completely randomly.

Pair Corralation between Aqr Large and Frost Growth

Assuming the 90 days horizon Aqr Large Cap is expected to generate 0.68 times more return on investment than Frost Growth. However, Aqr Large Cap is 1.48 times less risky than Frost Growth. It trades about 0.12 of its potential returns per unit of risk. Frost Growth Equity is currently generating about 0.03 per unit of risk. If you would invest  1,929  in Aqr Large Cap on September 19, 2024 and sell it today you would earn a total of  640.00  from holding Aqr Large Cap or generate 33.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Aqr Large Cap  vs.  Frost Growth Equity

 Performance 
       Timeline  
Aqr Large Cap 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Aqr Large Cap are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Aqr Large may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Frost Growth Equity 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Frost Growth Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Aqr Large and Frost Growth Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aqr Large and Frost Growth

The main advantage of trading using opposite Aqr Large and Frost Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large position performs unexpectedly, Frost Growth 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 Frost Growth will offset losses from the drop in Frost Growth's long position.
The idea behind Aqr Large Cap and Frost Growth Equity 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.
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.