Correlation Between Alliancebernstein and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Aqr Managed 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 Alliancebernstein and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein Global High and Aqr Managed Futures, you can compare the effects of market volatilities on Alliancebernstein and Aqr Managed 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 Alliancebernstein with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Aqr Managed.
Diversification Opportunities for Alliancebernstein and Aqr Managed
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Alliancebernstein and Aqr is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Aqr Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Managed Futures and Alliancebernstein 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 Alliancebernstein Global High are associated (or correlated) with Aqr Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Managed Futures has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Aqr Managed go up and down completely randomly.
Pair Corralation between Alliancebernstein and Aqr Managed
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 0.57 times more return on investment than Aqr Managed. However, Alliancebernstein Global High is 1.76 times less risky than Aqr Managed. It trades about 0.14 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.02 per unit of risk. If you would invest 902.00 in Alliancebernstein Global High on September 14, 2024 and sell it today you would earn a total of 184.00 from holding Alliancebernstein Global High or generate 20.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Alliancebernstein Global High vs. Aqr Managed Futures
Performance |
| Timeline |
| Alliancebernstein |
| Aqr Managed Futures |
Alliancebernstein and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Aqr Managed
The main advantage of trading using opposite Alliancebernstein and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Aqr Managed 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 Aqr Managed will offset losses from the drop in Aqr Managed's long position.| Alliancebernstein vs. Western Asset High | Alliancebernstein vs. Blackrock Debt Strategies | Alliancebernstein vs. Western Asset Diversified | Alliancebernstein vs. Western Asset Global |
| Aqr Managed vs. Siit Global Managed | Aqr Managed vs. Alliancebernstein Global High | Aqr Managed vs. Scharf Global Opportunity | Aqr Managed vs. Kinetics Global 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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