Correlation Between Gabelli Global and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Gabelli Global 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 Gabelli Global and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Global Financial and Aqr Managed Futures, you can compare the effects of market volatilities on Gabelli Global 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 Gabelli Global with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Aqr Managed.
Diversification Opportunities for Gabelli Global and Aqr Managed
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gabelli and Aqr is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Financial 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 Gabelli Global 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 Gabelli Global Financial 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 Gabelli Global i.e., Gabelli Global and Aqr Managed go up and down completely randomly.
Pair Corralation between Gabelli Global and Aqr Managed
Assuming the 90 days horizon Gabelli Global Financial is expected to generate 0.98 times more return on investment than Aqr Managed. However, Gabelli Global Financial is 1.02 times less risky than Aqr Managed. It trades about 0.11 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.04 per unit of risk. If you would invest 1,255 in Gabelli Global Financial on September 20, 2024 and sell it today you would earn a total of 335.00 from holding Gabelli Global Financial or generate 26.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Financial vs. Aqr Managed Futures
Performance |
| Timeline |
| Gabelli Global Financial |
| Aqr Managed Futures |
Gabelli Global and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Aqr Managed
The main advantage of trading using opposite Gabelli Global and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global 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.| Gabelli Global vs. Ab Fixed Income Shares | Gabelli Global vs. Scharf Fund Retail | Gabelli Global vs. Rbc Global Equity | Gabelli Global vs. Calamos Global Equity |
| Aqr Managed vs. Goldman Sachs Financial | Aqr Managed vs. Transamerica Financial Life | Aqr Managed vs. Icon Financial Fund | Aqr Managed vs. Gabelli Global Financial |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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