Correlation Between Aqr Managed and Akre Focus
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Akre Focus 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 Akre Focus 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 Akre Focus Fund, you can compare the effects of market volatilities on Aqr Managed and Akre Focus 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 Akre Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Akre Focus.
Diversification Opportunities for Aqr Managed and Akre Focus
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aqr and Akre is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Akre Focus Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akre Focus Fund 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 Akre Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akre Focus Fund has no effect on the direction of Aqr Managed i.e., Aqr Managed and Akre Focus go up and down completely randomly.
Pair Corralation between Aqr Managed and Akre Focus
Assuming the 90 days horizon Aqr Managed is expected to generate 139.32 times less return on investment than Akre Focus. But when comparing it to its historical volatility, Aqr Managed Futures is 1.63 times less risky than Akre Focus. It trades about 0.0 of its potential returns per unit of risk. Akre Focus Fund is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 6,808 in Akre Focus Fund on November 3, 2024 and sell it today you would earn a total of 443.00 from holding Akre Focus Fund or generate 6.51% 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. Akre Focus Fund
Performance |
| Timeline |
| Aqr Managed Futures |
| Akre Focus Fund |
Aqr Managed and Akre Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Akre Focus
The main advantage of trading using opposite Aqr Managed and Akre Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Akre Focus 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 Akre Focus will offset losses from the drop in Akre Focus' long position.| Aqr Managed vs. Tiaa Cref Large Cap Value | Aqr Managed vs. Blackrock Large Cap | Aqr Managed vs. Ab Large Cap | Aqr Managed vs. Tax Managed Large Cap |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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