Correlation Between Aqr Diversified and Global Hard
Can any of the company-specific risk be diversified away by investing in both Aqr Diversified and Global Hard 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 Diversified and Global Hard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Diversified Arbitrage and Global Hard Assets, you can compare the effects of market volatilities on Aqr Diversified and Global Hard 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 Diversified with a short position of Global Hard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Diversified and Global Hard.
Diversification Opportunities for Aqr Diversified and Global Hard
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aqr and Global is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Diversified Arbitrage and Global Hard Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Hard Assets and Aqr Diversified 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 Diversified Arbitrage are associated (or correlated) with Global Hard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Hard Assets has no effect on the direction of Aqr Diversified i.e., Aqr Diversified and Global Hard go up and down completely randomly.
Pair Corralation between Aqr Diversified and Global Hard
Assuming the 90 days horizon Aqr Diversified is expected to generate 3.51 times less return on investment than Global Hard. But when comparing it to its historical volatility, Aqr Diversified Arbitrage is 8.52 times less risky than Global Hard. It trades about 0.4 of its potential returns per unit of risk. Global Hard Assets is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,031 in Global Hard Assets on December 28, 2024 and sell it today you would earn a total of 283.00 from holding Global Hard Assets or generate 9.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Aqr Diversified Arbitrage vs. Global Hard Assets
Performance |
Timeline |
Aqr Diversified Arbitrage |
Global Hard Assets |
Aqr Diversified and Global Hard Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aqr Diversified and Global Hard
The main advantage of trading using opposite Aqr Diversified and Global Hard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Diversified position performs unexpectedly, Global Hard 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 Global Hard will offset losses from the drop in Global Hard's long position.Aqr Diversified vs. Glg Intl Small | Aqr Diversified vs. Legg Mason Partners | Aqr Diversified vs. Small Midcap Dividend Income | Aqr Diversified vs. Pace Smallmedium Value |
Global Hard vs. Old Westbury Fixed | Global Hard vs. Pnc International Equity | Global Hard vs. Pnc International Equity | Global Hard vs. Rbc China Equity |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |