Correlation Between Boston Partners and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Boston Partners 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 Boston Partners and Aqr Managed 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 Aqr Managed Futures, you can compare the effects of market volatilities on Boston Partners 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 Boston Partners with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Aqr Managed.
Diversification Opportunities for Boston Partners and Aqr Managed
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boston and Aqr is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Longshort 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 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 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 Boston Partners i.e., Boston Partners and Aqr Managed go up and down completely randomly.
Pair Corralation between Boston Partners and Aqr Managed
Assuming the 90 days horizon Boston Partners Longshort is expected to generate 1.91 times more return on investment than Aqr Managed. However, Boston Partners is 1.91 times more volatile than Aqr Managed Futures. It trades about 0.03 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.01 per unit of risk. If you would invest 1,449 in Boston Partners Longshort on August 26, 2024 and sell it today you would earn a total of 105.00 from holding Boston Partners Longshort or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Longshort vs. Aqr Managed Futures
Performance |
| Timeline |
| Boston Partners Longshort |
| Aqr Managed Futures |
Boston Partners and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Aqr Managed
The main advantage of trading using opposite Boston Partners and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners 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.| Boston Partners vs. Aqr Managed Futures | Boston Partners vs. Neuberger Berman Long | Boston Partners vs. Asg Managed Futures | Boston Partners vs. Marketfield Fund Marketfield |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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