Correlation Between Aqr Managed and Sound Shore
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Sound Shore 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 Sound Shore 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 Sound Shore Fund, you can compare the effects of market volatilities on Aqr Managed and Sound Shore 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 Sound Shore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Sound Shore.
Diversification Opportunities for Aqr Managed and Sound Shore
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aqr and Sound is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Sound Shore Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sound Shore 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 Sound Shore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sound Shore Fund has no effect on the direction of Aqr Managed i.e., Aqr Managed and Sound Shore go up and down completely randomly.
Pair Corralation between Aqr Managed and Sound Shore
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 0.51 times more return on investment than Sound Shore. However, Aqr Managed Futures is 1.96 times less risky than Sound Shore. It trades about 0.05 of its potential returns per unit of risk. Sound Shore Fund is currently generating about 0.01 per unit of risk. If you would invest 747.00 in Aqr Managed Futures on October 25, 2024 and sell it today you would earn a total of 108.00 from holding Aqr Managed Futures or generate 14.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Sound Shore Fund
Performance |
| Timeline |
| Aqr Managed Futures |
| Sound Shore Fund |
Aqr Managed and Sound Shore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Sound Shore
The main advantage of trading using opposite Aqr Managed and Sound Shore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Sound Shore 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 Sound Shore will offset losses from the drop in Sound Shore's long position.| Aqr Managed vs. Fidelity Sai Convertible | Aqr Managed vs. Allianzgi Convertible Income | Aqr Managed vs. Columbia Convertible Securities | Aqr Managed vs. Lord Abbett Convertible |
| Sound Shore vs. Tiaa Cref Lifestyle Servative | Sound Shore vs. Global Diversified Income | Sound Shore vs. Vy T Rowe | Sound Shore vs. Tax Free Conservative Income |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |