Correlation Between Aqr Diversified and Pgim Securitized
Can any of the company-specific risk be diversified away by investing in both Aqr Diversified and Pgim Securitized 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 Pgim Securitized 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 Pgim Securitized Credit, you can compare the effects of market volatilities on Aqr Diversified and Pgim Securitized 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 Pgim Securitized. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Diversified and Pgim Securitized.
Diversification Opportunities for Aqr Diversified and Pgim Securitized
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aqr and Pgim is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Diversified Arbitrage and Pgim Securitized Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Securitized Credit 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 Pgim Securitized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Securitized Credit has no effect on the direction of Aqr Diversified i.e., Aqr Diversified and Pgim Securitized go up and down completely randomly.
Pair Corralation between Aqr Diversified and Pgim Securitized
Assuming the 90 days horizon Aqr Diversified Arbitrage is expected to generate 0.79 times more return on investment than Pgim Securitized. However, Aqr Diversified Arbitrage is 1.27 times less risky than Pgim Securitized. It trades about 0.43 of its potential returns per unit of risk. Pgim Securitized Credit is currently generating about 0.32 per unit of risk. If you would invest 1,243 in Aqr Diversified Arbitrage on April 21, 2025 and sell it today you would earn a total of 31.00 from holding Aqr Diversified Arbitrage or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Diversified Arbitrage vs. Pgim Securitized Credit
Performance |
| Timeline |
| Aqr Diversified Arbitrage |
| Pgim Securitized Credit |
Aqr Diversified and Pgim Securitized Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Diversified and Pgim Securitized
The main advantage of trading using opposite Aqr Diversified and Pgim Securitized positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Diversified position performs unexpectedly, Pgim Securitized 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 Pgim Securitized will offset losses from the drop in Pgim Securitized'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 |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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