Correlation Between US GOVERNMENT and Aqr Small
Can any of the company-specific risk be diversified away by investing in both US GOVERNMENT and Aqr Small 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 US GOVERNMENT and Aqr Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US GOVERNMENT SECURITIES and Aqr Small Cap, you can compare the effects of market volatilities on US GOVERNMENT and Aqr Small 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 US GOVERNMENT with a short position of Aqr Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of US GOVERNMENT and Aqr Small.
Diversification Opportunities for US GOVERNMENT and Aqr Small
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CAUKX and Aqr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US GOVERNMENT SECURITIES and Aqr Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Small Cap and US GOVERNMENT 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 US GOVERNMENT SECURITIES are associated (or correlated) with Aqr Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Small Cap has no effect on the direction of US GOVERNMENT i.e., US GOVERNMENT and Aqr Small go up and down completely randomly.
Pair Corralation between US GOVERNMENT and Aqr Small
If you would invest 1,973 in Aqr Small Cap on September 11, 2025 and sell it today you would earn a total of 98.00 from holding Aqr Small Cap or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
US GOVERNMENT SECURITIES vs. Aqr Small Cap
Performance |
| Timeline |
| US GOVERNMENT SECURITIES |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Aqr Small Cap |
US GOVERNMENT and Aqr Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US GOVERNMENT and Aqr Small
The main advantage of trading using opposite US GOVERNMENT and Aqr Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US GOVERNMENT position performs unexpectedly, Aqr Small 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 Aqr Small will offset losses from the drop in Aqr Small's long position.| US GOVERNMENT vs. Shelton International Select | US GOVERNMENT vs. Shelton International Select | US GOVERNMENT vs. Shelton Emerging Markets | US GOVERNMENT vs. Shelton Emerging Markets |
| Aqr Small vs. Loomis Sayles Inflation | Aqr Small vs. Pimco Inflation Response | Aqr Small vs. Short Duration Inflation | Aqr Small vs. Aqr Managed Futures |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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