Correlation Between Aqr Long-short and Calvert Moderate
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Calvert Moderate 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 Long-short and Calvert Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Long Short Equity and Calvert Moderate Allocation, you can compare the effects of market volatilities on Aqr Long-short and Calvert Moderate 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 Long-short with a short position of Calvert Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Calvert Moderate.
Diversification Opportunities for Aqr Long-short and Calvert Moderate
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqr and Calvert is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Calvert Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Moderate All and Aqr Long-short 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 Long Short Equity are associated (or correlated) with Calvert Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Moderate All has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Calvert Moderate go up and down completely randomly.
Pair Corralation between Aqr Long-short and Calvert Moderate
Assuming the 90 days horizon Aqr Long-short is expected to generate 1.52 times less return on investment than Calvert Moderate. In addition to that, Aqr Long-short is 1.01 times more volatile than Calvert Moderate Allocation. It trades about 0.13 of its total potential returns per unit of risk. Calvert Moderate Allocation is currently generating about 0.2 per unit of volatility. If you would invest 2,232 in Calvert Moderate Allocation on June 1, 2025 and sell it today you would earn a total of 120.00 from holding Calvert Moderate Allocation or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Calvert Moderate Allocation
Performance |
| Timeline |
| Aqr Long Short |
| Calvert Moderate All |
Aqr Long-short and Calvert Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and Calvert Moderate
The main advantage of trading using opposite Aqr Long-short and Calvert Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Calvert Moderate 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 Calvert Moderate will offset losses from the drop in Calvert Moderate's long position.| Aqr Long-short vs. Northern Small Cap | Aqr Long-short vs. Foundry Partners Fundamental | Aqr Long-short vs. Omni Small Cap Value | Aqr Long-short vs. Pace Smallmedium Value |
| Calvert Moderate vs. Calvert Developed Market | Calvert Moderate vs. Calvert Developed Market | Calvert Moderate vs. Calvert Short Duration | Calvert Moderate vs. Calvert International Responsible |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |