Correlation Between Boston Partners and James Aggressive
Can any of the company-specific risk be diversified away by investing in both Boston Partners and James Aggressive 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 Boston Partners and James Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Longshort and James Aggressive Allocation, you can compare the effects of market volatilities on Boston Partners and James Aggressive 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 Boston Partners with a short position of James Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and James Aggressive.
Diversification Opportunities for Boston Partners and James Aggressive
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boston and James is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Longshort and James Aggressive Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Aggressive All and Boston Partners 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 Boston Partners Longshort are associated (or correlated) with James Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Aggressive All has no effect on the direction of Boston Partners i.e., Boston Partners and James Aggressive go up and down completely randomly.
Pair Corralation between Boston Partners and James Aggressive
Assuming the 90 days horizon Boston Partners Longshort is expected to generate 0.65 times more return on investment than James Aggressive. However, Boston Partners Longshort is 1.54 times less risky than James Aggressive. It trades about 0.36 of its potential returns per unit of risk. James Aggressive Allocation is currently generating about 0.23 per unit of risk. If you would invest 1,347 in Boston Partners Longshort on October 20, 2024 and sell it today you would earn a total of 44.00 from holding Boston Partners Longshort or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Longshort vs. James Aggressive Allocation
Performance |
| Timeline |
| Boston Partners Longshort |
| James Aggressive All |
Boston Partners and James Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and James Aggressive
The main advantage of trading using opposite Boston Partners and James Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners position performs unexpectedly, James Aggressive 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 James Aggressive will offset losses from the drop in James Aggressive's long position.| Boston Partners vs. Aqr Managed Futures | Boston Partners vs. Neuberger Berman Long | Boston Partners vs. Asg Managed Futures | Boston Partners vs. Marketfield Fund Marketfield |
| James Aggressive vs. T Rowe Price | James Aggressive vs. Blrc Sgy Mnp | James Aggressive vs. Pioneer Amt Free Municipal | James Aggressive vs. Nuveen Strategic Municipal |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |