Correlation Between Aqr Managed and Nuveen Mid
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Nuveen Mid 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 Nuveen Mid 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 Nuveen Mid Cap, you can compare the effects of market volatilities on Aqr Managed and Nuveen Mid 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 Nuveen Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Nuveen Mid.
Diversification Opportunities for Aqr Managed and Nuveen Mid
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqr and Nuveen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Nuveen Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Mid Cap 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 Nuveen Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Mid Cap has no effect on the direction of Aqr Managed i.e., Aqr Managed and Nuveen Mid go up and down completely randomly.
Pair Corralation between Aqr Managed and Nuveen Mid
Assuming the 90 days horizon Aqr Managed is expected to generate 3.7 times less return on investment than Nuveen Mid. But when comparing it to its historical volatility, Aqr Managed Futures is 1.7 times less risky than Nuveen Mid. It trades about 0.03 of its potential returns per unit of risk. Nuveen Mid Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,962 in Nuveen Mid Cap on September 12, 2024 and sell it today you would earn a total of 1,333 from holding Nuveen Mid Cap or generate 45.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Nuveen Mid Cap
Performance |
| Timeline |
| Aqr Managed Futures |
| Nuveen Mid Cap |
Aqr Managed and Nuveen Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Nuveen Mid
The main advantage of trading using opposite Aqr Managed and Nuveen Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Nuveen Mid 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 Nuveen Mid will offset losses from the drop in Nuveen Mid's long position.| Aqr Managed vs. Davis Financial Fund | Aqr Managed vs. Angel Oak Financial | Aqr Managed vs. Icon Financial Fund | Aqr Managed vs. Goldman Sachs Financial |
| Nuveen Mid vs. T Rowe Price | Nuveen Mid vs. T Rowe Price | Nuveen Mid vs. SCOR PK | Nuveen Mid vs. Morningstar Unconstrained Allocation |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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