Correlation Between Aqr Managed and Maryland Tax
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Maryland Tax 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 Maryland Tax 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 Maryland Tax Free Bond, you can compare the effects of market volatilities on Aqr Managed and Maryland Tax 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 Maryland Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Maryland Tax.
Diversification Opportunities for Aqr Managed and Maryland Tax
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AQR and Maryland is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Maryland Tax Free Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maryland Tax Free 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 Maryland Tax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maryland Tax Free has no effect on the direction of Aqr Managed i.e., Aqr Managed and Maryland Tax go up and down completely randomly.
Pair Corralation between Aqr Managed and Maryland Tax
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 2.1 times more return on investment than Maryland Tax. However, Aqr Managed is 2.1 times more volatile than Maryland Tax Free Bond. It trades about 0.11 of its potential returns per unit of risk. Maryland Tax Free Bond is currently generating about -0.06 per unit of risk. If you would invest 841.00 in Aqr Managed Futures on October 23, 2024 and sell it today you would earn a total of 20.00 from holding Aqr Managed Futures or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Maryland Tax Free Bond
Performance |
| Timeline |
| Aqr Managed Futures |
| Maryland Tax Free |
Aqr Managed and Maryland Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Maryland Tax
The main advantage of trading using opposite Aqr Managed and Maryland Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Maryland Tax 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 Maryland Tax will offset losses from the drop in Maryland Tax's long position.| Aqr Managed vs. Maryland Tax Free Bond | Aqr Managed vs. Nuveen Strategic Municipal | Aqr Managed vs. Ambrus Core Bond | Aqr Managed vs. Leader Short Term Bond |
| Maryland Tax vs. Smead Value Fund | Maryland Tax vs. Calvert Large Cap | Maryland Tax vs. Qs Large Cap | Maryland Tax vs. Transamerica Large Cap |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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