Correlation Between Mfs International and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Mfs International 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 Mfs International and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs International Growth and Aqr Managed Futures, you can compare the effects of market volatilities on Mfs International 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 Mfs International with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs International and Aqr Managed.
Diversification Opportunities for Mfs International and Aqr Managed
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mfs and Aqr is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Mfs International Growth 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 Mfs International 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 Mfs International Growth 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 Mfs International i.e., Mfs International and Aqr Managed go up and down completely randomly.
Pair Corralation between Mfs International and Aqr Managed
Assuming the 90 days horizon Mfs International Growth is expected to under-perform the Aqr Managed. In addition to that, Mfs International is 1.23 times more volatile than Aqr Managed Futures. It trades about -0.23 of its total potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.04 per unit of volatility. If you would invest 840.00 in Aqr Managed Futures on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Aqr Managed Futures or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs International Growth vs. Aqr Managed Futures
Performance |
| Timeline |
| Mfs International Growth |
| Aqr Managed Futures |
Mfs International and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs International and Aqr Managed
The main advantage of trading using opposite Mfs International and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs International 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.| Mfs International vs. Europacific Growth Fund | Mfs International vs. Europacific Growth Fund | Mfs International vs. Europacific Growth Fund | Mfs International vs. Europacific Growth Fund |
| Aqr Managed vs. Aqr Managed Futures | Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. Asg Managed Futures |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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