Correlation Between Aqr Risk and Ftfa-franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Aqr Risk and Ftfa-franklin Templeton 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 Risk and Ftfa-franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Risk Parity and Ftfa Franklin Templeton Growth, you can compare the effects of market volatilities on Aqr Risk and Ftfa-franklin Templeton 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 Risk with a short position of Ftfa-franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Risk and Ftfa-franklin Templeton.
Diversification Opportunities for Aqr Risk and Ftfa-franklin Templeton
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aqr and Ftfa-franklin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Risk Parity and Ftfa Franklin Templeton Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ftfa Franklin Templeton and Aqr Risk 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 Risk Parity are associated (or correlated) with Ftfa-franklin Templeton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ftfa Franklin Templeton has no effect on the direction of Aqr Risk i.e., Aqr Risk and Ftfa-franklin Templeton go up and down completely randomly.
Pair Corralation between Aqr Risk and Ftfa-franklin Templeton
Assuming the 90 days horizon Aqr Risk Parity is expected to generate 0.85 times more return on investment than Ftfa-franklin Templeton. However, Aqr Risk Parity is 1.17 times less risky than Ftfa-franklin Templeton. It trades about 0.28 of its potential returns per unit of risk. Ftfa Franklin Templeton Growth is currently generating about 0.11 per unit of risk. If you would invest 1,043 in Aqr Risk Parity on October 24, 2024 and sell it today you would earn a total of 33.00 from holding Aqr Risk Parity or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Risk Parity vs. Ftfa Franklin Templeton Growth
Performance |
| Timeline |
| Aqr Risk Parity |
| Ftfa Franklin Templeton |
Aqr Risk and Ftfa-franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Risk and Ftfa-franklin Templeton
The main advantage of trading using opposite Aqr Risk and Ftfa-franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Risk position performs unexpectedly, Ftfa-franklin Templeton 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 Ftfa-franklin Templeton will offset losses from the drop in Ftfa-franklin Templeton's long position.| Aqr Risk vs. Mesirow Financial High | Aqr Risk vs. Siit High Yield | Aqr Risk vs. Federated High Yield | Aqr Risk vs. Catalystsmh High Income |
| Ftfa-franklin Templeton vs. Aqr Risk Parity | Ftfa-franklin Templeton vs. Ab High Income | Ftfa-franklin Templeton vs. Ab High Income | Ftfa-franklin Templeton vs. Ab High Income |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |