Correlation Between Aqr Equity and Guggenheim Market

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

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

Diversification Opportunities for Aqr Equity and Guggenheim Market

0.0

Correlation Coefficient

Aqr Equity  Guggenheim Market

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 Equity Market and Guggenheim Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Market Neutral and Aqr Equity 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 Equity Market are associated (or correlated) with Guggenheim Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Market Neutral has no effect on the direction of Aqr Equity i.e., Aqr Equity and Guggenheim Market go up and down completely randomly.

Pair Corralation between Aqr Equity and Guggenheim Market

If you would invest  1,007  in Aqr Equity Market on December 22, 2024 and sell it today you would earn a total of  95.00  from holding Aqr Equity Market or generate 9.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	31.67%
Values	Daily Returns

Aqr Equity Market  vs.  Guggenheim Market Neutral

Aqr Equity Market

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Aqr Equity Market are ranked lower than 31 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Aqr Equity may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Guggenheim Market Neutral

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guggenheim Market Neutral has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Guggenheim Market 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 Equity and Guggenheim Market

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

The idea behind Aqr Equity Market and Guggenheim Market Neutral 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.