Correlation Between Aqr Small and Evaluator Very

Can any of the company-specific risk be diversified away by investing in both Aqr Small and Evaluator Very 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 Evaluator Very 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 Evaluator Very Conservative, you can compare the effects of market volatilities on Aqr Small and Evaluator Very 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 Evaluator Very. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Small and Evaluator Very.

Diversification Opportunities for Aqr Small and Evaluator Very

0.91

Correlation Coefficient

Aqr Small  Evaluator Very

Almost no diversification

The 3 months correlation between Aqr and Evaluator is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Small Cap and Evaluator Very Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaluator Very Conse 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 Evaluator Very. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaluator Very Conse has no effect on the direction of Aqr Small i.e., Aqr Small and Evaluator Very go up and down completely randomly.

Pair Corralation between Aqr Small and Evaluator Very

Assuming the 90 days horizon Aqr Small Cap is expected to generate 5.25 times more return on investment than Evaluator Very. However, Aqr Small is 5.25 times more volatile than Evaluator Very Conservative. It trades about 0.14 of its potential returns per unit of risk. Evaluator Very Conservative is currently generating about 0.27 per unit of risk. If you would invest  1,610  in Aqr Small Cap on May 7, 2025 and sell it today you would earn a total of  163.00  from holding Aqr Small Cap or generate 10.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Aqr Small Cap  vs.  Evaluator Very Conservative

Aqr Small Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Aqr Small Cap are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Aqr Small may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Evaluator Very Conse

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Evaluator Very Conservative are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Evaluator Very is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aqr Small and Evaluator Very

The main advantage of trading using opposite Aqr Small and Evaluator Very positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Small position performs unexpectedly, Evaluator Very 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 Evaluator Very will offset losses from the drop in Evaluator Very's long position.

The idea behind Aqr Small Cap and Evaluator Very Conservative 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.