Correlation Between Investec Emerging and Aqr Diversified
Can any of the company-specific risk be diversified away by investing in both Investec Emerging and Aqr Diversified 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 Investec Emerging and Aqr Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Aqr Diversified Arbitrage, you can compare the effects of market volatilities on Investec Emerging and Aqr Diversified 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 Investec Emerging with a short position of Aqr Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Aqr Diversified.
Diversification Opportunities for Investec Emerging and Aqr Diversified
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Investec and AQR is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets and Aqr Diversified Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Diversified Arbitrage and Investec Emerging 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 Investec Emerging Markets are associated (or correlated) with Aqr Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Diversified Arbitrage has no effect on the direction of Investec Emerging i.e., Investec Emerging and Aqr Diversified go up and down completely randomly.
Pair Corralation between Investec Emerging and Aqr Diversified
Assuming the 90 days horizon Investec Emerging Markets is expected to generate 12.02 times more return on investment than Aqr Diversified. However, Investec Emerging is 12.02 times more volatile than Aqr Diversified Arbitrage. It trades about 0.22 of its potential returns per unit of risk. Aqr Diversified Arbitrage is currently generating about 0.35 per unit of risk. If you would invest 1,266 in Investec Emerging Markets on July 19, 2025 and sell it today you would earn a total of 150.00 from holding Investec Emerging Markets or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Emerging Markets vs. Aqr Diversified Arbitrage
Performance |
| Timeline |
| Investec Emerging Markets |
| Aqr Diversified Arbitrage |
Investec Emerging and Aqr Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Aqr Diversified
The main advantage of trading using opposite Investec Emerging and Aqr Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging position performs unexpectedly, Aqr Diversified 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 Aqr Diversified will offset losses from the drop in Aqr Diversified's long position.| Investec Emerging vs. Investec Global Franchise | Investec Emerging vs. Investec Global Franchise | Investec Emerging vs. Ninety One International |
| Aqr Diversified vs. T Rowe Price | Aqr Diversified vs. Intermediate Term Bond Fund | Aqr Diversified vs. Municipal Bond Fund | Aqr Diversified vs. Transamerica Bond Class |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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