Correlation Between Pimco Trends and Aqr Long-short
Can any of the company-specific risk be diversified away by investing in both Pimco Trends and Aqr Long-short 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 Pimco Trends and Aqr Long-short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Trends Managed and Aqr Long Short Equity, you can compare the effects of market volatilities on Pimco Trends and Aqr Long-short 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 Pimco Trends with a short position of Aqr Long-short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Aqr Long-short.
Diversification Opportunities for Pimco Trends and Aqr Long-short
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pimco and Aqr is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Aqr Long Short Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Long Short and Pimco Trends 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 Pimco Trends Managed are associated (or correlated) with Aqr Long-short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Long Short has no effect on the direction of Pimco Trends i.e., Pimco Trends and Aqr Long-short go up and down completely randomly.
Pair Corralation between Pimco Trends and Aqr Long-short
Assuming the 90 days horizon Pimco Trends is expected to generate 2.02 times less return on investment than Aqr Long-short. In addition to that, Pimco Trends is 1.43 times more volatile than Aqr Long Short Equity. It trades about 0.16 of its total potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.47 per unit of volatility. If you would invest 1,569 in Aqr Long Short Equity on September 1, 2024 and sell it today you would earn a total of 70.00 from holding Aqr Long Short Equity or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Trends Managed vs. Aqr Long Short Equity
Performance |
| Timeline |
| Pimco Trends Managed |
| Aqr Long Short |
Pimco Trends and Aqr Long-short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and Aqr Long-short
The main advantage of trading using opposite Pimco Trends and Aqr Long-short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends position performs unexpectedly, Aqr Long-short 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 Long-short will offset losses from the drop in Aqr Long-short's long position.| Pimco Trends vs. Asg Managed Futures | Pimco Trends vs. Asg Managed Futures | Pimco Trends vs. Aqr Managed Futures | Pimco Trends vs. iMGP DBi Managed |
| Aqr Long-short vs. Guggenheim Risk Managed | Aqr Long-short vs. Columbia Real Estate | Aqr Long-short vs. Franklin Real Estate | Aqr Long-short vs. Deutsche Real Estate |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |