Correlation Between Aqr Diversified and John Hancock
Can any of the company-specific risk be diversified away by investing in both Aqr Diversified and John Hancock 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 Aqr Diversified and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Diversified Arbitrage and John Hancock Money, you can compare the effects of market volatilities on Aqr Diversified and John Hancock 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 Aqr Diversified with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Diversified and John Hancock.
Diversification Opportunities for Aqr Diversified and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aqr and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Diversified Arbitrage and John Hancock Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Money and Aqr Diversified 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 Aqr Diversified Arbitrage are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Money has no effect on the direction of Aqr Diversified i.e., Aqr Diversified and John Hancock go up and down completely randomly.
Pair Corralation between Aqr Diversified and John Hancock
If you would invest 1,205 in Aqr Diversified Arbitrage on October 18, 2024 and sell it today you would earn a total of 10.00 from holding Aqr Diversified Arbitrage or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 68.42% |
| Values | Daily Returns |
Aqr Diversified Arbitrage vs. John Hancock Money
Performance |
| Timeline |
| Aqr Diversified Arbitrage |
| John Hancock Money |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aqr Diversified and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Diversified and John Hancock
The main advantage of trading using opposite Aqr Diversified and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Diversified position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Aqr Diversified vs. Investec Emerging Markets | Aqr Diversified vs. Saat Market Growth | Aqr Diversified vs. Alphacentric Hedged Market | Aqr Diversified vs. Inverse Emerging Markets |
| John Hancock vs. Global Gold Fund | John Hancock vs. Goldman Sachs Short | John Hancock vs. Short Precious Metals | John Hancock vs. World Precious Minerals |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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