Correlation Between Polen Bank and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Polen Bank 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 Polen Bank and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polen Bank Loan and Aqr Managed Futures, you can compare the effects of market volatilities on Polen Bank 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 Polen Bank with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polen Bank and Aqr Managed.
Diversification Opportunities for Polen Bank and Aqr Managed
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Polen and Aqr is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Polen Bank Loan 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 Polen Bank 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 Polen Bank Loan 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 Polen Bank i.e., Polen Bank and Aqr Managed go up and down completely randomly.
Pair Corralation between Polen Bank and Aqr Managed
Assuming the 90 days horizon Polen Bank Loan is expected to under-perform the Aqr Managed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Polen Bank Loan is 3.62 times less risky than Aqr Managed. The mutual fund trades about -0.19 of its potential returns per unit of risk. The Aqr Managed Futures is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 812.00 in Aqr Managed Futures on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Aqr Managed Futures or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polen Bank Loan vs. Aqr Managed Futures
Performance |
| Timeline |
| Polen Bank Loan |
| Aqr Managed Futures |
Polen Bank and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polen Bank and Aqr Managed
The main advantage of trading using opposite Polen Bank and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polen Bank 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.| Polen Bank vs. Prnpl Inv Fd | Polen Bank vs. Polen Global Growth | Polen Bank vs. Polen Global Growth | Polen Bank vs. Polen International Growth |
| Aqr Managed vs. Ab Discovery Value | Aqr Managed vs. Heartland Value Plus | Aqr Managed vs. Ab Small Cap | Aqr Managed vs. Fpa Queens Road |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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