Correlation Between Aqr Managed and Pimco Trends
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Pimco Trends 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 Pimco Trends 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 Pimco Trends Managed, you can compare the effects of market volatilities on Aqr Managed and Pimco Trends 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 Pimco Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Pimco Trends.
Diversification Opportunities for Aqr Managed and Pimco Trends
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aqr and Pimco is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Pimco Trends Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Trends 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 Pimco Trends. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Trends Managed has no effect on the direction of Aqr Managed i.e., Aqr Managed and Pimco Trends go up and down completely randomly.
Pair Corralation between Aqr Managed and Pimco Trends
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 0.66 times more return on investment than Pimco Trends. However, Aqr Managed Futures is 1.51 times less risky than Pimco Trends. It trades about 0.22 of its potential returns per unit of risk. Pimco Trends Managed is currently generating about 0.1 per unit of risk. If you would invest 849.00 in Aqr Managed Futures on August 24, 2024 and sell it today you would earn a total of 19.00 from holding Aqr Managed Futures or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Pimco Trends Managed
Performance |
| Timeline |
| Aqr Managed Futures |
| Pimco Trends Managed |
Aqr Managed and Pimco Trends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Pimco Trends
The main advantage of trading using opposite Aqr Managed and Pimco Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Pimco Trends 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 Pimco Trends will offset losses from the drop in Pimco Trends' long position.| Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. American Beacon Ahl | Aqr Managed vs. Asg Managed Futures |
| Pimco Trends vs. Asg Managed Futures | Pimco Trends vs. Asg Managed Futures | Pimco Trends vs. Aqr Managed Futures | Pimco Trends vs. iMGP DBi Managed |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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