Correlation Between Aqr Small and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Aqr Small and Glg Intl 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 Small and Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Small Cap and Glg Intl Small, you can compare the effects of market volatilities on Aqr Small and Glg Intl 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 Small with a short position of Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Small and Glg Intl.
Diversification Opportunities for Aqr Small and Glg Intl
Very poor diversification
The 3 months correlation between Aqr and Glg is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Small Cap and Glg Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glg Intl Small and Aqr Small 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 Small Cap are associated (or correlated) with Glg Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glg Intl Small has no effect on the direction of Aqr Small i.e., Aqr Small and Glg Intl go up and down completely randomly.
Pair Corralation between Aqr Small and Glg Intl
Assuming the 90 days horizon Aqr Small is expected to generate 1.26 times less return on investment than Glg Intl. But when comparing it to its historical volatility, Aqr Small Cap is 1.26 times less risky than Glg Intl. It trades about 0.1 of its potential returns per unit of risk. Glg Intl Small is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7,476 in Glg Intl Small on October 6, 2025 and sell it today you would earn a total of 1,041 from holding Glg Intl Small or generate 13.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Small Cap vs. Glg Intl Small
Performance |
| Timeline |
| Aqr Small Cap |
| Glg Intl Small |
Aqr Small and Glg Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Small and Glg Intl
The main advantage of trading using opposite Aqr Small and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Small position performs unexpectedly, Glg Intl 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 Glg Intl will offset losses from the drop in Glg Intl's long position.| Aqr Small vs. Pace Smallmedium Value | Aqr Small vs. Artisan Small Cap | Aqr Small vs. United Kingdom Small | Aqr Small vs. Mutual Of America |
| Glg Intl vs. Allianzgi Convertible Income | Glg Intl vs. Absolute Convertible Arbitrage | Glg Intl vs. Gabelli Convertible And | Glg Intl vs. Putnam Convertible Securities |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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