Correlation Between Nuveen Real and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Nuveen Real 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 Nuveen Real and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Real Estate and Aqr Managed Futures, you can compare the effects of market volatilities on Nuveen Real 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 Nuveen Real with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Real and Aqr Managed.
Diversification Opportunities for Nuveen Real and Aqr Managed
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nuveen and AQR is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Real Estate 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 Nuveen Real 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 Nuveen Real Estate 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 Nuveen Real i.e., Nuveen Real and Aqr Managed go up and down completely randomly.
Pair Corralation between Nuveen Real and Aqr Managed
Assuming the 90 days horizon Nuveen Real Estate is expected to generate 2.14 times more return on investment than Aqr Managed. However, Nuveen Real is 2.14 times more volatile than Aqr Managed Futures. It trades about 0.11 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about -0.02 per unit of risk. If you would invest 1,383 in Nuveen Real Estate on October 24, 2024 and sell it today you would earn a total of 29.00 from holding Nuveen Real Estate or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Real Estate vs. Aqr Managed Futures
Performance |
| Timeline |
| Nuveen Real Estate |
| Aqr Managed Futures |
Nuveen Real and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Real and Aqr Managed
The main advantage of trading using opposite Nuveen Real and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Real 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.| Nuveen Real vs. Aqr Managed Futures | Nuveen Real vs. Ab Bond Inflation | Nuveen Real vs. Ab Bond Inflation | Nuveen Real vs. Atac Inflation Rotation |
| Aqr Managed vs. T Rowe Price | Aqr Managed vs. Semiconductor Ultrasector Profund | Aqr Managed vs. Rational Strategic Allocation | Aqr Managed vs. Transamerica Asset Allocation |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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