Correlation Between Nasdaq 100 and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 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 Nasdaq 100 and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Profund Nasdaq 100 and Aqr Managed Futures, you can compare the effects of market volatilities on Nasdaq 100 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 Nasdaq 100 with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Aqr Managed.
Diversification Opportunities for Nasdaq 100 and Aqr Managed
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nasdaq and Aqr is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Profund Nasdaq 100 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 Nasdaq 100 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 Nasdaq 100 Profund Nasdaq 100 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 Nasdaq 100 i.e., Nasdaq 100 and Aqr Managed go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Aqr Managed
Assuming the 90 days horizon Nasdaq 100 Profund Nasdaq 100 is expected to under-perform the Aqr Managed. In addition to that, Nasdaq 100 is 1.78 times more volatile than Aqr Managed Futures. It trades about -0.19 of its total potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.22 per unit of volatility. If you would invest 834.00 in Aqr Managed Futures on October 16, 2024 and sell it today you would earn a total of 24.00 from holding Aqr Managed Futures or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Profund Nasdaq 100 vs. Aqr Managed Futures
Performance |
| Timeline |
| Nasdaq 100 Profund |
| Aqr Managed Futures |
Nasdaq 100 and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Aqr Managed
The main advantage of trading using opposite Nasdaq 100 and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 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.| Nasdaq 100 vs. Bull Profund Bull | Nasdaq 100 vs. Nasdaq 100 Profund Nasdaq 100 | Nasdaq 100 vs. Ultranasdaq 100 Profund Ultranasdaq 100 | Nasdaq 100 vs. Small Cap Profund Small Cap |
| Aqr Managed vs. Asg Managed Futures | Aqr Managed vs. Nationwide Inflation Protected Securities | Aqr Managed vs. Ab Bond Inflation | Aqr Managed vs. Western Asset Inflation |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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