Correlation Between Aqr Managed and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Credit Suisse 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 Credit Suisse 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 Credit Suisse Managed, you can compare the effects of market volatilities on Aqr Managed and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Credit Suisse.
Diversification Opportunities for Aqr Managed and Credit Suisse
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqr and Credit is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Credit Suisse Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Managed 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Managed has no effect on the direction of Aqr Managed i.e., Aqr Managed and Credit Suisse go up and down completely randomly.
Pair Corralation between Aqr Managed and Credit Suisse
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 1.05 times more return on investment than Credit Suisse. However, Aqr Managed is 1.05 times more volatile than Credit Suisse Managed. It trades about 0.03 of its potential returns per unit of risk. Credit Suisse Managed is currently generating about -0.02 per unit of risk. If you would invest 806.00 in Aqr Managed Futures on November 3, 2024 and sell it today you would earn a total of 41.00 from holding Aqr Managed Futures or generate 5.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Credit Suisse Managed
Performance |
| Timeline |
| Aqr Managed Futures |
| Credit Suisse Managed |
Aqr Managed and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Credit Suisse
The main advantage of trading using opposite Aqr Managed and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Aqr Managed vs. Global Gold Fund | Aqr Managed vs. Franklin Gold Precious | Aqr Managed vs. James Balanced Golden | Aqr Managed vs. Great West Goldman Sachs |
| Credit Suisse vs. Fkhemx | Credit Suisse vs. Wabmsx | Credit Suisse vs. Fbjygx | Credit Suisse vs. Small Pany Growth |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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