Correlation Between Aqr Tm and Wasatch Small
Can any of the company-specific risk be diversified away by investing in both Aqr Tm and Wasatch Small 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 Tm and Wasatch Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Tm Emerging and Wasatch Small Cap, you can compare the effects of market volatilities on Aqr Tm and Wasatch Small 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 Tm with a short position of Wasatch Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Tm and Wasatch Small.
Diversification Opportunities for Aqr Tm and Wasatch Small
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aqr and Wasatch is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Tm Emerging and Wasatch Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch Small Cap and Aqr Tm 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 Tm Emerging are associated (or correlated) with Wasatch Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Small Cap has no effect on the direction of Aqr Tm i.e., Aqr Tm and Wasatch Small go up and down completely randomly.
Pair Corralation between Aqr Tm and Wasatch Small
Assuming the 90 days horizon Aqr Tm Emerging is expected to generate 0.83 times more return on investment than Wasatch Small. However, Aqr Tm Emerging is 1.21 times less risky than Wasatch Small. It trades about 0.15 of its potential returns per unit of risk. Wasatch Small Cap is currently generating about -0.04 per unit of risk. If you would invest 1,209 in Aqr Tm Emerging on September 2, 2025 and sell it today you would earn a total of 112.00 from holding Aqr Tm Emerging or generate 9.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Tm Emerging vs. Wasatch Small Cap
Performance |
| Timeline |
| Aqr Tm Emerging |
| Wasatch Small Cap |
Aqr Tm and Wasatch Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Tm and Wasatch Small
The main advantage of trading using opposite Aqr Tm and Wasatch Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Tm position performs unexpectedly, Wasatch Small 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 Wasatch Small will offset losses from the drop in Wasatch Small's long position.| Aqr Tm vs. Putnam Global Financials | Aqr Tm vs. Mesirow Financial Small | Aqr Tm vs. Icon Financial Fund | Aqr Tm vs. John Hancock Financial |
| Wasatch Small vs. Mid Cap Value Profund | Wasatch Small vs. Small Cap Value Profund | Wasatch Small vs. Small Cap Growth Profund |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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