Correlation Between Aqr Diversified and New York
Can any of the company-specific risk be diversified away by investing in both Aqr Diversified and New York 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 New York 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 New York Municipal, you can compare the effects of market volatilities on Aqr Diversified and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Diversified and New York.
Diversification Opportunities for Aqr Diversified and New York
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and New is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Diversified Arbitrage and New York Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Municipal 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Municipal has no effect on the direction of Aqr Diversified i.e., Aqr Diversified and New York go up and down completely randomly.
Pair Corralation between Aqr Diversified and New York
Assuming the 90 days horizon Aqr Diversified is expected to generate 1.44 times less return on investment than New York. But when comparing it to its historical volatility, Aqr Diversified Arbitrage is 1.08 times less risky than New York. It trades about 0.25 of its potential returns per unit of risk. New York Municipal is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,315 in New York Municipal on June 10, 2025 and sell it today you would earn a total of 24.00 from holding New York Municipal or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Diversified Arbitrage vs. New York Municipal
Performance |
| Timeline |
| Aqr Diversified Arbitrage |
| New York Municipal |
Aqr Diversified and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Diversified and New York
The main advantage of trading using opposite Aqr Diversified and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Diversified position performs unexpectedly, New York 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 New York will offset losses from the drop in New York'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 |
| New York vs. Angel Oak Ultrashort | New York vs. Vanguard Short Term Government | New York vs. Leader Short Term Bond | New York vs. Calvert Short Duration |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |