Correlation Between Pimco Trends and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Pimco Trends 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 Pimco Trends and Aqr Managed 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 Managed Futures, you can compare the effects of market volatilities on Pimco Trends 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 Pimco Trends with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Aqr Managed.
Diversification Opportunities for Pimco Trends and Aqr Managed
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pimco and Aqr is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed 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 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 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 Pimco Trends i.e., Pimco Trends and Aqr Managed go up and down completely randomly.
Pair Corralation between Pimco Trends and Aqr Managed
Assuming the 90 days horizon Pimco Trends Managed is expected to under-perform the Aqr Managed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Pimco Trends Managed is 1.48 times less risky than Aqr Managed. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Aqr Managed Futures is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 808.00 in Aqr Managed Futures on August 27, 2024 and sell it today you would earn a total of 67.00 from holding Aqr Managed Futures or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Trends Managed vs. Aqr Managed Futures
Performance |
| Timeline |
| Pimco Trends Managed |
| Aqr Managed Futures |
Pimco Trends and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and Aqr Managed
The main advantage of trading using opposite Pimco Trends and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends 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.| Pimco Trends vs. Fidelity Sai International | Pimco Trends vs. Fidelity Sai Minimum | Pimco Trends vs. Fidelity Sai Treasury | Pimco Trends vs. Fidelity Sai Emerging |
| Aqr Managed vs. Aqr Large Cap | Aqr Managed vs. Aqr Large Cap | Aqr Managed vs. Aqr International Defensive | Aqr Managed vs. Aqr International Defensive |
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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