Correlation Between Large-cap Growth and Aqr Diversified
Can any of the company-specific risk be diversified away by investing in both Large-cap Growth and Aqr Diversified 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 Large-cap Growth and Aqr Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Large Cap Growth Profund and Aqr Diversified Arbitrage, you can compare the effects of market volatilities on Large-cap Growth and Aqr Diversified 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 Large-cap Growth with a short position of Aqr Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Large-cap Growth and Aqr Diversified.
Diversification Opportunities for Large-cap Growth and Aqr Diversified
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Large-cap and Aqr is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Large Cap Growth Profund and Aqr Diversified Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Diversified Arbitrage and Large-cap Growth 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 Large Cap Growth Profund are associated (or correlated) with Aqr Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Diversified Arbitrage has no effect on the direction of Large-cap Growth i.e., Large-cap Growth and Aqr Diversified go up and down completely randomly.
Pair Corralation between Large-cap Growth and Aqr Diversified
Assuming the 90 days horizon Large Cap Growth Profund is expected to generate 9.44 times more return on investment than Aqr Diversified. However, Large-cap Growth is 9.44 times more volatile than Aqr Diversified Arbitrage. It trades about 0.16 of its potential returns per unit of risk. Aqr Diversified Arbitrage is currently generating about 0.27 per unit of risk. If you would invest 4,700 in Large Cap Growth Profund on June 6, 2025 and sell it today you would earn a total of 362.00 from holding Large Cap Growth Profund or generate 7.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Large Cap Growth Profund vs. Aqr Diversified Arbitrage
Performance |
| Timeline |
| Large Cap Growth |
| Aqr Diversified Arbitrage |
Large-cap Growth and Aqr Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Large-cap Growth and Aqr Diversified
The main advantage of trading using opposite Large-cap Growth and Aqr Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Large-cap Growth position performs unexpectedly, Aqr Diversified 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 Diversified will offset losses from the drop in Aqr Diversified's long position.| Large-cap Growth vs. Shelton Emerging Markets | Large-cap Growth vs. Ab Global Risk | Large-cap Growth vs. T Rowe Price | Large-cap Growth vs. Versatile Bond Portfolio |
| Aqr Diversified vs. Aqr Large Cap | Aqr Diversified vs. Aqr Large Cap | Aqr Diversified vs. Aqr International Defensive | Aqr Diversified vs. Aqr International Defensive |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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