Correlation Between Aqr Managed and Wilmington Multi-manager
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Wilmington Multi-manager 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 Wilmington Multi-manager 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 Wilmington Multi Manager Real, you can compare the effects of market volatilities on Aqr Managed and Wilmington Multi-manager 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 Wilmington Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Wilmington Multi-manager.
Diversification Opportunities for Aqr Managed and Wilmington Multi-manager
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aqr and Wilmington is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Wilmington Multi Manager Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Multi-manager 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 Wilmington Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Multi-manager has no effect on the direction of Aqr Managed i.e., Aqr Managed and Wilmington Multi-manager go up and down completely randomly.
Pair Corralation between Aqr Managed and Wilmington Multi-manager
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 1.0 times more return on investment than Wilmington Multi-manager. However, Aqr Managed is 1.0 times more volatile than Wilmington Multi Manager Real. It trades about 0.04 of its potential returns per unit of risk. Wilmington Multi Manager Real is currently generating about 0.03 per unit of risk. If you would invest 775.00 in Aqr Managed Futures on November 9, 2024 and sell it today you would earn a total of 91.00 from holding Aqr Managed Futures or generate 11.74% 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. Wilmington Multi Manager Real
Performance |
| Timeline |
| Aqr Managed Futures |
| Wilmington Multi-manager |
Aqr Managed and Wilmington Multi-manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Wilmington Multi-manager
The main advantage of trading using opposite Aqr Managed and Wilmington Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Wilmington Multi-manager 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 Wilmington Multi-manager will offset losses from the drop in Wilmington Multi-manager's long position.| Aqr Managed vs. Gabelli Global Financial | Aqr Managed vs. Angel Oak Financial | Aqr Managed vs. Transamerica Financial Life | Aqr Managed vs. Davis Financial Fund |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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