Correlation Between Europac Gold and Aqr Long-short
Can any of the company-specific risk be diversified away by investing in both Europac Gold and Aqr Long-short 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 Europac Gold and Aqr Long-short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Aqr Long Short Equity, you can compare the effects of market volatilities on Europac Gold and Aqr Long-short 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 Europac Gold with a short position of Aqr Long-short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Aqr Long-short.
Diversification Opportunities for Europac Gold and Aqr Long-short
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Europac and Aqr is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and Aqr Long Short Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Long Short and Europac Gold 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 Europac Gold Fund are associated (or correlated) with Aqr Long-short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Long Short has no effect on the direction of Europac Gold i.e., Europac Gold and Aqr Long-short go up and down completely randomly.
Pair Corralation between Europac Gold and Aqr Long-short
Assuming the 90 days horizon Europac Gold Fund is expected to generate 4.84 times more return on investment than Aqr Long-short. However, Europac Gold is 4.84 times more volatile than Aqr Long Short Equity. It trades about 0.15 of its potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.22 per unit of risk. If you would invest 1,209 in Europac Gold Fund on May 1, 2025 and sell it today you would earn a total of 212.00 from holding Europac Gold Fund or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europac Gold Fund vs. Aqr Long Short Equity
Performance |
| Timeline |
| Europac Gold |
| Aqr Long Short |
Europac Gold and Aqr Long-short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Aqr Long-short
The main advantage of trading using opposite Europac Gold and Aqr Long-short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold position performs unexpectedly, Aqr Long-short 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 Long-short will offset losses from the drop in Aqr Long-short's long position.| Europac Gold vs. Europac International Value | Europac Gold vs. Europac International Dividend | Europac Gold vs. Ep Emerging Markets | Europac Gold vs. Europac International Bond |
| Aqr Long-short vs. Nt International Small Mid | Aqr Long-short vs. United Kingdom Small | Aqr Long-short vs. Glg Intl Small | Aqr Long-short vs. Qs Small Capitalization |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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