Correlation Between NYSE Composite and Aqr Large
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Aqr Large 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 NYSE Composite and Aqr Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Aqr Large Cap, you can compare the effects of market volatilities on NYSE Composite and Aqr Large 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 NYSE Composite with a short position of Aqr Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Aqr Large.
Diversification Opportunities for NYSE Composite and Aqr Large
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Aqr is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Aqr Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Large Cap and NYSE Composite 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 NYSE Composite are associated (or correlated) with Aqr Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Large Cap has no effect on the direction of NYSE Composite i.e., NYSE Composite and Aqr Large go up and down completely randomly.
Pair Corralation between NYSE Composite and Aqr Large
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the Aqr Large. But the index apears to be less risky and, when comparing its historical volatility, NYSE Composite is 1.45 times less risky than Aqr Large. The index trades about -0.1 of its potential returns per unit of risk. The Aqr Large Cap is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,506 in Aqr Large Cap on August 5, 2025 and sell it today you would earn a total of 22.00 from holding Aqr Large Cap or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
NYSE Composite vs. Aqr Large Cap
Performance |
| Timeline |
NYSE Composite and Aqr Large Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Aqr Large Cap
Pair trading matchups for Aqr Large
Pair Trading with NYSE Composite and Aqr Large
The main advantage of trading using opposite NYSE Composite and Aqr Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Aqr Large 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 Large will offset losses from the drop in Aqr Large's long position.| NYSE Composite vs. Olympic Steel | NYSE Composite vs. United Rentals | NYSE Composite vs. Warner Music Group | NYSE Composite vs. Mitsubishi UFJ Lease |
| Aqr Large vs. Boston Partners Small | Aqr Large vs. Eaton Vance Richard | Aqr Large vs. Eaton Vance Richard | Aqr Large vs. Thrivent High Yield |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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