Correlation Between Aqr Managed and Mfs International
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Mfs International 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 Mfs International 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 Mfs International Growth, you can compare the effects of market volatilities on Aqr Managed and Mfs International 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 Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Mfs International.
Diversification Opportunities for Aqr Managed and Mfs International
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aqr and Mfs is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Mfs International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International Growth 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 Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International Growth has no effect on the direction of Aqr Managed i.e., Aqr Managed and Mfs International go up and down completely randomly.
Pair Corralation between Aqr Managed and Mfs International
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 0.81 times more return on investment than Mfs International. However, Aqr Managed Futures is 1.23 times less risky than Mfs International. It trades about 0.04 of its potential returns per unit of risk. Mfs International Growth is currently generating about -0.23 per unit of risk. If you would invest 840.00 in Aqr Managed Futures on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Aqr Managed Futures or generate 0.48% 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. Mfs International Growth
Performance |
| Timeline |
| Aqr Managed Futures |
| Mfs International Growth |
Aqr Managed and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Mfs International
The main advantage of trading using opposite Aqr Managed and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Mfs International 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 Mfs International will offset losses from the drop in Mfs International's long position.| Aqr Managed vs. Aqr Managed Futures | Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. Asg Managed Futures |
| Mfs International vs. Europacific Growth Fund | Mfs International vs. Europacific Growth Fund | Mfs International vs. Europacific Growth Fund | Mfs International vs. Europacific Growth 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |