Correlation Between Abbey Capital and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Abbey Capital and Aqr Managed 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 Abbey Capital and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abbey Capital Futures and Aqr Managed Futures, you can compare the effects of market volatilities on Abbey Capital and Aqr Managed 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 Abbey Capital with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abbey Capital and Aqr Managed.
Diversification Opportunities for Abbey Capital and Aqr Managed
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Abbey and Aqr is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Abbey Capital Futures and Aqr Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Managed Futures and Abbey Capital 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 Abbey Capital Futures are associated (or correlated) with Aqr Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Managed Futures has no effect on the direction of Abbey Capital i.e., Abbey Capital and Aqr Managed go up and down completely randomly.
Pair Corralation between Abbey Capital and Aqr Managed
Assuming the 90 days horizon Abbey Capital Futures is expected to generate 0.44 times more return on investment than Aqr Managed. However, Abbey Capital Futures is 2.25 times less risky than Aqr Managed. It trades about 0.03 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about -0.01 per unit of risk. If you would invest 1,103 in Abbey Capital Futures on November 2, 2024 and sell it today you would earn a total of 3.00 from holding Abbey Capital Futures or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abbey Capital Futures vs. Aqr Managed Futures
Performance |
| Timeline |
| Abbey Capital Futures |
| Aqr Managed Futures |
Abbey Capital and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abbey Capital and Aqr Managed
The main advantage of trading using opposite Abbey Capital and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abbey Capital position performs unexpectedly, Aqr Managed 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 Managed will offset losses from the drop in Aqr Managed's long position.| Abbey Capital vs. Ab Bond Inflation | Abbey Capital vs. Ab Bond Inflation | Abbey Capital vs. Short Duration Inflation | Abbey Capital vs. Ab Bond Inflation |
| Aqr Managed vs. Blackrock Moderate Prepared | Aqr Managed vs. Blackrock Retirement Income | Aqr Managed vs. Retirement Living Through | Aqr Managed vs. College Retirement Equities |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |