Correlation Between Aqr Managed and Marketfield Fund
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Marketfield 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 Marketfield 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 Marketfield Fund Marketfield, you can compare the effects of market volatilities on Aqr Managed and Marketfield 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 Marketfield Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Marketfield Fund.
Diversification Opportunities for Aqr Managed and Marketfield Fund
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Marketfield is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Marketfield Fund Marketfield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marketfield Fund Mar 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 Marketfield Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marketfield Fund Mar has no effect on the direction of Aqr Managed i.e., Aqr Managed and Marketfield Fund go up and down completely randomly.
Pair Corralation between Aqr Managed and Marketfield Fund
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 0.59 times more return on investment than Marketfield Fund. However, Aqr Managed Futures is 1.69 times less risky than Marketfield Fund. It trades about 0.07 of its potential returns per unit of risk. Marketfield Fund Marketfield is currently generating about -0.04 per unit of risk. If you would invest 821.00 in Aqr Managed Futures on January 18, 2025 and sell it today you would earn a total of 51.00 from holding Aqr Managed Futures or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Marketfield Fund Marketfield
Performance |
| Timeline |
| Aqr Managed Futures |
| Marketfield Fund Mar |
Aqr Managed and Marketfield Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Marketfield Fund
The main advantage of trading using opposite Aqr Managed and Marketfield Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Marketfield 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 Marketfield Fund will offset losses from the drop in Marketfield Fund's long position.| Aqr Managed vs. Qs Growth Fund | Aqr Managed vs. Eip Growth And | Aqr Managed vs. Lifestyle Ii Growth | Aqr Managed vs. Ab Centrated Growth |
| Marketfield Fund vs. Aqr Global Macro | Marketfield Fund vs. Franklin Mutual Global | Marketfield Fund vs. Legg Mason Global | Marketfield Fund vs. Siit Global Managed |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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