Correlation Between Aqr Managed and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Asg 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 Aqr Managed and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Managed Futures and Asg Managed Futures, you can compare the effects of market volatilities on Aqr Managed and Asg 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 Aqr Managed with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Asg Managed.
Diversification Opportunities for Aqr Managed and Asg Managed
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Asg is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Asg Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Managed Futures and Aqr Managed 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 Managed Futures are associated (or correlated) with Asg Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Managed Futures has no effect on the direction of Aqr Managed i.e., Aqr Managed and Asg Managed go up and down completely randomly.
Pair Corralation between Aqr Managed and Asg Managed
Assuming the 90 days horizon Aqr Managed Futures is expected to under-perform the Asg Managed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aqr Managed Futures is 1.27 times less risky than Asg Managed. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Asg Managed Futures is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 868.00 in Asg Managed Futures on October 19, 2024 and sell it today you would earn a total of 3.00 from holding Asg Managed Futures or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Asg Managed Futures
Performance |
| Timeline |
| Aqr Managed Futures |
| Asg Managed Futures |
Aqr Managed and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Asg Managed
The main advantage of trading using opposite Aqr Managed and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Asg 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 Asg Managed will offset losses from the drop in Asg Managed's long position.| Aqr Managed vs. Intermediate Government Bond | Aqr Managed vs. Davis Government Bond | Aqr Managed vs. Ab Government Exchange | Aqr Managed vs. Franklin Adjustable Government |
| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Eaton Vance Global | Asg Managed vs. Aqr Managed Futures |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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