Correlation Between Barings Emerging and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Barings Emerging 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 Barings Emerging and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Emerging Markets and Aqr Managed Futures, you can compare the effects of market volatilities on Barings Emerging 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 Barings Emerging with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Aqr Managed.
Diversification Opportunities for Barings Emerging and Aqr Managed
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Aqr is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets 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 Barings Emerging 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 Barings Emerging Markets 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 Barings Emerging i.e., Barings Emerging and Aqr Managed go up and down completely randomly.
Pair Corralation between Barings Emerging and Aqr Managed
Assuming the 90 days horizon Barings Emerging Markets is expected to generate 0.4 times more return on investment than Aqr Managed. However, Barings Emerging Markets is 2.48 times less risky than Aqr Managed. It trades about 0.08 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 702.00 in Barings Emerging Markets on August 24, 2024 and sell it today you would earn a total of 54.00 from holding Barings Emerging Markets or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Aqr Managed Futures
Performance |
| Timeline |
| Barings Emerging Markets |
| Aqr Managed Futures |
Barings Emerging and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Aqr Managed
The main advantage of trading using opposite Barings Emerging and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging 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.| Barings Emerging vs. T Rowe Price | Barings Emerging vs. T Rowe Price | Barings Emerging vs. Alliancebernstein National Municipal | Barings Emerging vs. California Bond Fund |
| Aqr Managed vs. Barings Emerging Markets | Aqr Managed vs. Pace International Emerging | Aqr Managed vs. Doubleline Emerging Markets | Aqr Managed vs. Artisan Emerging Markets |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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