Correlation Between Aqr Managed and Cliffwater Corporate
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Cliffwater Corporate 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 Cliffwater Corporate 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 Cliffwater Corporate Lending, you can compare the effects of market volatilities on Aqr Managed and Cliffwater Corporate 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 Cliffwater Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Cliffwater Corporate.
Diversification Opportunities for Aqr Managed and Cliffwater Corporate
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Cliffwater is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Cliffwater Corporate Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cliffwater Corporate 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 Cliffwater Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cliffwater Corporate has no effect on the direction of Aqr Managed i.e., Aqr Managed and Cliffwater Corporate go up and down completely randomly.
Pair Corralation between Aqr Managed and Cliffwater Corporate
Assuming the 90 days horizon Aqr Managed Futures is expected to under-perform the Cliffwater Corporate. In addition to that, Aqr Managed is 15.19 times more volatile than Cliffwater Corporate Lending. It trades about -0.04 of its total potential returns per unit of risk. Cliffwater Corporate Lending is currently generating about 1.03 per unit of volatility. If you would invest 1,062 in Cliffwater Corporate Lending on November 2, 2024 and sell it today you would earn a total of 10.00 from holding Cliffwater Corporate Lending or generate 0.94% 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. Cliffwater Corporate Lending
Performance |
| Timeline |
| Aqr Managed Futures |
| Cliffwater Corporate |
Aqr Managed and Cliffwater Corporate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Cliffwater Corporate
The main advantage of trading using opposite Aqr Managed and Cliffwater Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Cliffwater Corporate 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 Cliffwater Corporate will offset losses from the drop in Cliffwater Corporate's long position.| Aqr Managed vs. Gmo High Yield | Aqr Managed vs. Buffalo High Yield | Aqr Managed vs. Janus High Yield Fund | Aqr Managed vs. Strategic Advisers Income |
| Cliffwater Corporate vs. Vanguard Total Stock | Cliffwater Corporate vs. Vanguard 500 Index | Cliffwater Corporate vs. Vanguard Total Stock | Cliffwater Corporate vs. Vanguard Total Stock |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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