Correlation Between Icon Information and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Icon Information 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 Icon Information and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Information Technology and Aqr Managed Futures, you can compare the effects of market volatilities on Icon Information 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 Icon Information with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Information and Aqr Managed.
Diversification Opportunities for Icon Information and Aqr Managed
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Icon and Aqr is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Icon Information Technology 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 Icon Information 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 Icon Information Technology 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 Icon Information i.e., Icon Information and Aqr Managed go up and down completely randomly.
Pair Corralation between Icon Information and Aqr Managed
Assuming the 90 days horizon Icon Information Technology is expected to generate 0.99 times more return on investment than Aqr Managed. However, Icon Information Technology is 1.01 times less risky than Aqr Managed. It trades about 0.31 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 1,584 in Icon Information Technology on November 3, 2024 and sell it today you would earn a total of 104.00 from holding Icon Information Technology or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Information Technology vs. Aqr Managed Futures
Performance |
| Timeline |
| Icon Information Tec |
| Aqr Managed Futures |
Icon Information and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Information and Aqr Managed
The main advantage of trading using opposite Icon Information and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Information 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.| Icon Information vs. Mid Cap 15x Strategy | Icon Information vs. Vanguard Developed Markets | Icon Information vs. Old Westbury Short Term | Icon Information vs. Siit Emerging Markets |
| Aqr Managed vs. Victory Rs Partners | Aqr Managed vs. Fidelity Small Cap | Aqr Managed vs. Queens Road Small | Aqr Managed vs. Small Cap Value |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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