Correlation Between Aqr Managed and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Morgan Stanley 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 Morgan Stanley 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 Morgan Stanley Emerging, you can compare the effects of market volatilities on Aqr Managed and Morgan Stanley 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 Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Morgan Stanley.
Diversification Opportunities for Aqr Managed and Morgan Stanley
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aqr and Morgan is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Morgan Stanley Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley Emerging 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 Morgan Stanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morgan Stanley Emerging has no effect on the direction of Aqr Managed i.e., Aqr Managed and Morgan Stanley go up and down completely randomly.
Pair Corralation between Aqr Managed and Morgan Stanley
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 1.26 times more return on investment than Morgan Stanley. However, Aqr Managed is 1.26 times more volatile than Morgan Stanley Emerging. It trades about 0.05 of its potential returns per unit of risk. Morgan Stanley Emerging 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Morgan Stanley Emerging
Performance |
| Timeline |
| Aqr Managed Futures |
| Morgan Stanley Emerging |
Aqr Managed and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Morgan Stanley
The main advantage of trading using opposite Aqr Managed and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Morgan Stanley 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 Morgan Stanley will offset losses from the drop in Morgan Stanley'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 |
| Morgan Stanley vs. Vanguard Total Stock | Morgan Stanley vs. Vanguard 500 Index | Morgan Stanley vs. Vanguard Total Stock | Morgan Stanley vs. Vanguard Total Stock |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| 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 | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |