Correlation Between Martin Currie and Aqr Tm
Can any of the company-specific risk be diversified away by investing in both Martin Currie and Aqr Tm 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 Martin Currie and Aqr Tm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Currie Emerging and Aqr Tm Emerging, you can compare the effects of market volatilities on Martin Currie and Aqr Tm 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 Martin Currie with a short position of Aqr Tm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Aqr Tm.
Diversification Opportunities for Martin Currie and Aqr Tm
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Martin and Aqr is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Emerging and Aqr Tm Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Tm Emerging and Martin Currie 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 Martin Currie Emerging are associated (or correlated) with Aqr Tm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Tm Emerging has no effect on the direction of Martin Currie i.e., Martin Currie and Aqr Tm go up and down completely randomly.
Pair Corralation between Martin Currie and Aqr Tm
Assuming the 90 days horizon Martin Currie Emerging is expected to generate 0.97 times more return on investment than Aqr Tm. However, Martin Currie Emerging is 1.03 times less risky than Aqr Tm. It trades about -0.11 of its potential returns per unit of risk. Aqr Tm Emerging is currently generating about -0.14 per unit of risk. If you would invest 1,625 in Martin Currie Emerging on September 11, 2025 and sell it today you would lose (25.00) from holding Martin Currie Emerging or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Currie Emerging vs. Aqr Tm Emerging
Performance |
| Timeline |
| Martin Currie Emerging |
| Aqr Tm Emerging |
Martin Currie and Aqr Tm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and Aqr Tm
The main advantage of trading using opposite Martin Currie and Aqr Tm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, Aqr Tm 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 Tm will offset losses from the drop in Aqr Tm's long position.| Martin Currie vs. Elfun Diversified Fund | Martin Currie vs. Delaware Limited Term Diversified | Martin Currie vs. Tiaa Cref Lifestyle Conservative | Martin Currie vs. Pgim Conservative Retirement |
| Aqr Tm vs. Vanguard Emerging Markets | Aqr Tm vs. Vanguard Emerging Markets | Aqr Tm vs. Vanguard Emerging Markets | Aqr Tm vs. Vanguard Emerging Markets |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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