Correlation Between Aqr Managed and Hartford Floating
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Hartford Floating 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 Hartford Floating 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 The Hartford Floating, you can compare the effects of market volatilities on Aqr Managed and Hartford Floating 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 Hartford Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Hartford Floating.
Diversification Opportunities for Aqr Managed and Hartford Floating
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aqr and Hartford is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and The Hartford Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Floating 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 Hartford Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Floating has no effect on the direction of Aqr Managed i.e., Aqr Managed and Hartford Floating go up and down completely randomly.
Pair Corralation between Aqr Managed and Hartford Floating
Assuming the 90 days horizon Aqr Managed is expected to generate 1.64 times less return on investment than Hartford Floating. In addition to that, Aqr Managed is 3.45 times more volatile than The Hartford Floating. It trades about 0.03 of its total potential returns per unit of risk. The Hartford Floating is currently generating about 0.2 per unit of volatility. If you would invest 662.00 in The Hartford Floating on September 12, 2024 and sell it today you would earn a total of 128.00 from holding The Hartford Floating or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. The Hartford Floating
Performance |
| Timeline |
| Aqr Managed Futures |
| Hartford Floating |
Aqr Managed and Hartford Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Hartford Floating
The main advantage of trading using opposite Aqr Managed and Hartford Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Hartford Floating 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 Hartford Floating will offset losses from the drop in Hartford Floating'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 |
| Hartford Floating vs. Ab Small Cap | Hartford Floating vs. Df Dent Small | Hartford Floating vs. Smallcap Growth Fund | Hartford Floating vs. Glg Intl Small |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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