Correlation Between Aqr Diversified and Access Capital
Can any of the company-specific risk be diversified away by investing in both Aqr Diversified and Access Capital 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 Aqr Diversified and Access Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Diversified Arbitrage and Access Capital Munity, you can compare the effects of market volatilities on Aqr Diversified and Access Capital 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 Aqr Diversified with a short position of Access Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Diversified and Access Capital.
Diversification Opportunities for Aqr Diversified and Access Capital
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Access is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Diversified Arbitrage and Access Capital Munity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Capital Munity and Aqr Diversified 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 Aqr Diversified Arbitrage are associated (or correlated) with Access Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Capital Munity has no effect on the direction of Aqr Diversified i.e., Aqr Diversified and Access Capital go up and down completely randomly.
Pair Corralation between Aqr Diversified and Access Capital
Assuming the 90 days horizon Aqr Diversified is expected to generate 1.63 times less return on investment than Access Capital. But when comparing it to its historical volatility, Aqr Diversified Arbitrage is 3.67 times less risky than Access Capital. It trades about 0.3 of its potential returns per unit of risk. Access Capital Munity is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 752.00 in Access Capital Munity on June 5, 2025 and sell it today you would earn a total of 18.00 from holding Access Capital Munity or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Aqr Diversified Arbitrage vs. Access Capital Munity
Performance |
| Timeline |
| Aqr Diversified Arbitrage |
| Access Capital Munity |
Aqr Diversified and Access Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Diversified and Access Capital
The main advantage of trading using opposite Aqr Diversified and Access Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Diversified position performs unexpectedly, Access Capital 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 Access Capital will offset losses from the drop in Access Capital's long position.| Aqr Diversified vs. Aqr Large Cap | Aqr Diversified vs. Aqr Large Cap | Aqr Diversified vs. Aqr International Defensive | Aqr Diversified vs. Aqr International Defensive |
| Access Capital vs. Payden Government Fund | Access Capital vs. Us Government Securities | Access Capital vs. Ridgeworth Seix Government | Access Capital vs. Jpmorgan Government Bond |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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