Correlation Between Aqr Sustainable and Sentinel International
Can any of the company-specific risk be diversified away by investing in both Aqr Sustainable and Sentinel International 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 Sustainable and Sentinel International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Sustainable Long Short and Sentinel International Equity, you can compare the effects of market volatilities on Aqr Sustainable and Sentinel International 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 Sustainable with a short position of Sentinel International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Sustainable and Sentinel International.
Diversification Opportunities for Aqr Sustainable and Sentinel International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aqr and Sentinel is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Sustainable Long Short and Sentinel International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel International and Aqr Sustainable 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 Sustainable Long Short are associated (or correlated) with Sentinel International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel International has no effect on the direction of Aqr Sustainable i.e., Aqr Sustainable and Sentinel International go up and down completely randomly.
Pair Corralation between Aqr Sustainable and Sentinel International
Assuming the 90 days horizon Aqr Sustainable Long Short is expected to generate 1.16 times more return on investment than Sentinel International. However, Aqr Sustainable is 1.16 times more volatile than Sentinel International Equity. It trades about 0.15 of its potential returns per unit of risk. Sentinel International Equity is currently generating about 0.16 per unit of risk. If you would invest 1,454 in Aqr Sustainable Long Short on August 28, 2025 and sell it today you would earn a total of 111.00 from holding Aqr Sustainable Long Short or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Sustainable Long Short vs. Sentinel International Equity
Performance |
| Timeline |
| Aqr Sustainable Long |
| Sentinel International |
Aqr Sustainable and Sentinel International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Sustainable and Sentinel International
The main advantage of trading using opposite Aqr Sustainable and Sentinel International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Sustainable position performs unexpectedly, Sentinel International 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 Sentinel International will offset losses from the drop in Sentinel International's long position.| Aqr Sustainable vs. Mfs Technology Fund | Aqr Sustainable vs. Global Technology Portfolio | Aqr Sustainable vs. Fidelity Advisor Technology | Aqr Sustainable vs. Pgim Jennison Technology |
| Sentinel International vs. Touchstone Sands Capital | Sentinel International vs. Mid Cap Growth | Sentinel International vs. Mid Cap Growth | Sentinel International vs. Sentinel Small Pany |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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