Correlation Between Emerging Markets and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Emerging Markets 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 Emerging Markets and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Markets Portfolio and Aqr Managed Futures, you can compare the effects of market volatilities on Emerging Markets 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 Emerging Markets with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Markets and Aqr Managed.
Diversification Opportunities for Emerging Markets and Aqr Managed
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Emerging and Aqr is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Portfolio 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 Emerging Markets 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 Emerging Markets Portfolio 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 Emerging Markets i.e., Emerging Markets and Aqr Managed go up and down completely randomly.
Pair Corralation between Emerging Markets and Aqr Managed
Assuming the 90 days horizon Emerging Markets is expected to generate 6.88 times less return on investment than Aqr Managed. In addition to that, Emerging Markets is 1.0 times more volatile than Aqr Managed Futures. It trades about 0.02 of its total potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.16 per unit of volatility. If you would invest 856.00 in Aqr Managed Futures on September 12, 2024 and sell it today you would earn a total of 18.00 from holding Aqr Managed Futures or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerging Markets Portfolio vs. Aqr Managed Futures
Performance |
| Timeline |
| Emerging Markets Por |
| Aqr Managed Futures |
Emerging Markets and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Markets and Aqr Managed
The main advantage of trading using opposite Emerging Markets and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Markets 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.| Emerging Markets vs. American Funds New | Emerging Markets vs. SCOR PK | Emerging Markets vs. Morningstar Unconstrained Allocation | Emerging Markets vs. Via Renewables |
| Aqr Managed vs. Davis Financial Fund | Aqr Managed vs. Angel Oak Financial | Aqr Managed vs. Icon Financial Fund | Aqr Managed vs. Goldman Sachs 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |