Correlation Between Bny Mellon and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Bny Mellon 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 Bny Mellon and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bny Mellon Income and Aqr Managed Futures, you can compare the effects of market volatilities on Bny Mellon 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 Bny Mellon with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bny Mellon and Aqr Managed.
Diversification Opportunities for Bny Mellon and Aqr Managed
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bny and AQR is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bny Mellon Income 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 Bny Mellon 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 Bny Mellon Income 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 Bny Mellon i.e., Bny Mellon and Aqr Managed go up and down completely randomly.
Pair Corralation between Bny Mellon and Aqr Managed
Assuming the 90 days horizon Bny Mellon Income is expected to generate 0.75 times more return on investment than Aqr Managed. However, Bny Mellon Income is 1.33 times less risky than Aqr Managed. It trades about 0.16 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about -0.08 per unit of risk. If you would invest 764.00 in Bny Mellon Income on September 1, 2024 and sell it today you would earn a total of 116.00 from holding Bny Mellon Income or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bny Mellon Income vs. Aqr Managed Futures
Performance |
| Timeline |
| Bny Mellon Income |
| Aqr Managed Futures |
Bny Mellon and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bny Mellon and Aqr Managed
The main advantage of trading using opposite Bny Mellon and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bny Mellon 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.| Bny Mellon vs. Columbia Vertible Securities | Bny Mellon vs. Advent Claymore Convertible | Bny Mellon vs. Lord Abbett Convertible | Bny Mellon vs. Putnam Convertible Incm Gwth |
| Aqr Managed vs. Aqr Large Cap | Aqr Managed vs. Aqr Large Cap | Aqr Managed vs. Aqr International Defensive | Aqr Managed vs. Aqr International Defensive |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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