Correlation Between Doubleline Emerging and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Doubleline 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 Doubleline 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 Doubleline Emerging Markets and Aqr Managed Futures, you can compare the effects of market volatilities on Doubleline 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 Doubleline Emerging with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Emerging and Aqr Managed.
Diversification Opportunities for Doubleline Emerging and Aqr Managed
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Doubleline and Aqr is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline 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 Doubleline 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 Doubleline 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 Doubleline Emerging i.e., Doubleline Emerging and Aqr Managed go up and down completely randomly.
Pair Corralation between Doubleline Emerging and Aqr Managed
Assuming the 90 days horizon Doubleline Emerging is expected to generate 3.26 times less return on investment than Aqr Managed. But when comparing it to its historical volatility, Doubleline Emerging Markets is 2.13 times less risky than Aqr Managed. It trades about 0.01 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 810.00 in Aqr Managed Futures on August 24, 2024 and sell it today you would earn a total of 7.00 from holding Aqr Managed Futures or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Emerging Markets vs. Aqr Managed Futures
Performance |
| Timeline |
| Doubleline Emerging |
| Aqr Managed Futures |
Doubleline Emerging and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Emerging and Aqr Managed
The main advantage of trading using opposite Doubleline Emerging and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline 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.| Doubleline Emerging vs. Ab Global Real | Doubleline Emerging vs. Doubleline Global Bond | Doubleline Emerging vs. Barings Global Floating | Doubleline Emerging vs. Ab Global Real |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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