Correlation Between Aqr Small and Huber Capital

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Aqr Small and Huber Capital 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 Huber Capital 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 Huber Capital Equity, you can compare the effects of market volatilities on Aqr Small and Huber Capital 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 Huber Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Small and Huber Capital.

Diversification Opportunities for Aqr Small and Huber Capital

0.39
  Correlation Coefficient

Weak diversification

The 3 months correlation between Aqr and Huber is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Small Cap and Huber Capital Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huber Capital Equity 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 Huber Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huber Capital Equity has no effect on the direction of Aqr Small i.e., Aqr Small and Huber Capital go up and down completely randomly.

Pair Corralation between Aqr Small and Huber Capital

Assuming the 90 days horizon Aqr Small Cap is expected to generate 1.75 times more return on investment than Huber Capital. However, Aqr Small is 1.75 times more volatile than Huber Capital Equity. It trades about 0.04 of its potential returns per unit of risk. Huber Capital Equity is currently generating about -0.02 per unit of risk. If you would invest  1,936  in Aqr Small Cap on September 4, 2025 and sell it today you would earn a total of  62.00  from holding Aqr Small Cap or generate 3.2% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Aqr Small Cap  vs.  Huber Capital Equity

 Performance 
       Timeline  
Aqr Small Cap 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Aqr Small Cap are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Aqr Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Huber Capital Equity 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Huber Capital Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Huber Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Aqr Small and Huber Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aqr Small and Huber Capital

The main advantage of trading using opposite Aqr Small and Huber Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Small position performs unexpectedly, Huber Capital 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 Huber Capital will offset losses from the drop in Huber Capital's long position.
The idea behind Aqr Small Cap and Huber Capital Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Other Complementary Tools

Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital