Correlation Between The Hartford and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both The Hartford 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 The Hartford and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Inflation and Aqr Managed Futures, you can compare the effects of market volatilities on The Hartford 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 The Hartford with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Aqr Managed.
Diversification Opportunities for The Hartford and Aqr Managed
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between The and AQR is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Inflation 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 The Hartford 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 The Hartford Inflation 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 The Hartford i.e., The Hartford and Aqr Managed go up and down completely randomly.
Pair Corralation between The Hartford and Aqr Managed
Assuming the 90 days horizon The Hartford is expected to generate 1.58 times less return on investment than Aqr Managed. But when comparing it to its historical volatility, The Hartford Inflation is 2.9 times less risky than Aqr Managed. It trades about 0.05 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 746.00 in Aqr Managed Futures on September 1, 2024 and sell it today you would earn a total of 67.00 from holding Aqr Managed Futures or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
The Hartford Inflation vs. Aqr Managed Futures
Performance |
| Timeline |
| The Hartford Inflation |
| Aqr Managed Futures |
The Hartford and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Aqr Managed
The main advantage of trading using opposite The Hartford and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford 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.| The Hartford vs. Us Government Securities | The Hartford vs. Us Government Securities | The Hartford vs. Dws Government Money | The Hartford vs. Franklin Government Money |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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