Correlation Between Aqr Managed and China Fund
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and China Fund 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 China Fund 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 China Fund, you can compare the effects of market volatilities on Aqr Managed and China Fund 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 China Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and China Fund.
Diversification Opportunities for Aqr Managed and China Fund
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aqr and China is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and China Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Fund 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 China Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Fund has no effect on the direction of Aqr Managed i.e., Aqr Managed and China Fund go up and down completely randomly.
Pair Corralation between Aqr Managed and China Fund
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 0.27 times more return on investment than China Fund. However, Aqr Managed Futures is 3.7 times less risky than China Fund. It trades about 0.06 of its potential returns per unit of risk. China Fund is currently generating about -0.06 per unit of risk. If you would invest 827.00 in Aqr Managed Futures on November 1, 2024 and sell it today you would earn a total of 24.00 from holding Aqr Managed Futures or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. China Fund
Performance |
| Timeline |
| Aqr Managed Futures |
| China Fund |
Aqr Managed and China Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and China Fund
The main advantage of trading using opposite Aqr Managed and China Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, China Fund 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 China Fund will offset losses from the drop in China Fund's long position.| Aqr Managed vs. Blackrock Moderate Prepared | Aqr Managed vs. Jp Morgan Smartretirement | Aqr Managed vs. Putnman Retirement Ready | Aqr Managed vs. Franklin Lifesmart Retirement |
| China Fund vs. Ashmore Group Plc | China Fund vs. Mexico Equity And | China Fund vs. Western Asset Managed | China Fund vs. Blackrock Muniholdings Quality |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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