Correlation Between Aqr Long-short and Pimco Commoditiesplus
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Pimco Commoditiesplus 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 Long-short and Pimco Commoditiesplus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Long Short Equity and Pimco Moditiesplus Strategy, you can compare the effects of market volatilities on Aqr Long-short and Pimco Commoditiesplus 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 Long-short with a short position of Pimco Commoditiesplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Pimco Commoditiesplus.
Diversification Opportunities for Aqr Long-short and Pimco Commoditiesplus
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqr and Pimco is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Pimco Moditiesplus Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Commoditiesplus and Aqr Long-short 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 Long Short Equity are associated (or correlated) with Pimco Commoditiesplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Commoditiesplus has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Pimco Commoditiesplus go up and down completely randomly.
Pair Corralation between Aqr Long-short and Pimco Commoditiesplus
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 0.56 times more return on investment than Pimco Commoditiesplus. However, Aqr Long Short Equity is 1.78 times less risky than Pimco Commoditiesplus. It trades about 0.44 of its potential returns per unit of risk. Pimco Moditiesplus Strategy is currently generating about 0.06 per unit of risk. If you would invest 1,563 in Aqr Long Short Equity on December 2, 2024 and sell it today you would earn a total of 123.00 from holding Aqr Long Short Equity or generate 7.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Aqr Long Short Equity vs. Pimco Moditiesplus Strategy
Performance |
Timeline |
Aqr Long Short |
Pimco Commoditiesplus |
Aqr Long-short and Pimco Commoditiesplus Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aqr Long-short and Pimco Commoditiesplus
The main advantage of trading using opposite Aqr Long-short and Pimco Commoditiesplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Pimco Commoditiesplus 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 Pimco Commoditiesplus will offset losses from the drop in Pimco Commoditiesplus' long position.Aqr Long-short vs. Multisector Bond Sma | Aqr Long-short vs. Ambrus Core Bond | Aqr Long-short vs. Versatile Bond Portfolio | Aqr Long-short vs. Praxis Impact Bond |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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