Correlation Between Aqr Managed and The Hartford
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and The Hartford 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 The Hartford 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 The Hartford Balanced, you can compare the effects of market volatilities on Aqr Managed and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and The Hartford.
Diversification Opportunities for Aqr Managed and The Hartford
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aqr and The is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and The Hartford Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Balanced 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Balanced has no effect on the direction of Aqr Managed i.e., Aqr Managed and The Hartford go up and down completely randomly.
Pair Corralation between Aqr Managed and The Hartford
Assuming the 90 days horizon Aqr Managed is expected to generate 55.13 times less return on investment than The Hartford. In addition to that, Aqr Managed is 1.79 times more volatile than The Hartford Balanced. It trades about 0.0 of its total potential returns per unit of risk. The Hartford Balanced is currently generating about 0.33 per unit of volatility. If you would invest 1,417 in The Hartford Balanced on November 3, 2024 and sell it today you would earn a total of 38.00 from holding The Hartford Balanced or generate 2.68% 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. The Hartford Balanced
Performance |
| Timeline |
| Aqr Managed Futures |
| Hartford Balanced |
Aqr Managed and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and The Hartford
The main advantage of trading using opposite Aqr Managed and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford'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 |
| The Hartford vs. Goehring Rozencwajg Resources | The Hartford vs. Ivy Natural Resources | The Hartford vs. Thrivent Natural Resources | The Hartford vs. Vanguard Energy Index |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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