Correlation Between Aqr Long-short and Artisan Emerging
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Artisan Emerging 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 Artisan Emerging 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 Artisan Emerging Markets, you can compare the effects of market volatilities on Aqr Long-short and Artisan Emerging 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 Artisan Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Artisan Emerging.
Diversification Opportunities for Aqr Long-short and Artisan Emerging
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aqr and Artisan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Artisan Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Emerging Markets 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 Artisan Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Emerging Markets has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Artisan Emerging go up and down completely randomly.
Pair Corralation between Aqr Long-short and Artisan Emerging
Assuming the 90 days horizon Aqr Long Short Equity is expected to generate 5.06 times more return on investment than Artisan Emerging. However, Aqr Long-short is 5.06 times more volatile than Artisan Emerging Markets. It trades about 0.06 of its potential returns per unit of risk. Artisan Emerging Markets is currently generating about 0.18 per unit of risk. If you would invest 1,072 in Aqr Long Short Equity on February 26, 2024 and sell it today you would earn a total of 467.00 from holding Aqr Long Short Equity or generate 43.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Aqr Long Short Equity vs. Artisan Emerging Markets
Performance |
Timeline |
Aqr Long Short |
Artisan Emerging Markets |
Aqr Long-short and Artisan Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aqr Long-short and Artisan Emerging
The main advantage of trading using opposite Aqr Long-short and Artisan Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Artisan Emerging 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 Artisan Emerging will offset losses from the drop in Artisan Emerging's long position.Aqr Long-short vs. Aqr Large Cap | Aqr Long-short vs. Aqr International Defensive | Aqr Long-short vs. Aqr International Defensive | Aqr Long-short vs. Aqr International Defensive |
Artisan Emerging vs. Artisan Value Income | Artisan Emerging vs. Artisan Developing World | Artisan Emerging vs. Artisan Thematic Fund | Artisan Emerging vs. Artisan Small Cap |
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.
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