Correlation Between Aqr Long-short and Mfs Blended
Can any of the company-specific risk be diversified away by investing in both Aqr Long-short and Mfs Blended 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 Long-short and Mfs Blended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Long Short Equity and Mfs Blended Research, you can compare the effects of market volatilities on Aqr Long-short and Mfs Blended 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 Long-short with a short position of Mfs Blended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Long-short and Mfs Blended.
Diversification Opportunities for Aqr Long-short and Mfs Blended
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Mfs is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Long Short Equity and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research and Aqr Long-short 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 Long Short Equity are associated (or correlated) with Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of Aqr Long-short i.e., Aqr Long-short and Mfs Blended go up and down completely randomly.
Pair Corralation between Aqr Long-short and Mfs Blended
Assuming the 90 days horizon Aqr Long-short is expected to generate 1.13 times less return on investment than Mfs Blended. But when comparing it to its historical volatility, Aqr Long Short Equity is 2.14 times less risky than Mfs Blended. It trades about 0.19 of its potential returns per unit of risk. Mfs Blended Research is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,424 in Mfs Blended Research on November 27, 2024 and sell it today you would earn a total of 938.00 from holding Mfs Blended Research or generate 65.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Long Short Equity vs. Mfs Blended Research
Performance |
| Timeline |
| Aqr Long Short |
| Mfs Blended Research |
Aqr Long-short and Mfs Blended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Long-short and Mfs Blended
The main advantage of trading using opposite Aqr Long-short and Mfs Blended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Long-short position performs unexpectedly, Mfs Blended 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 Mfs Blended will offset losses from the drop in Mfs Blended's long position.| Aqr Long-short vs. Barings Emerging Markets | Aqr Long-short vs. Goldman Sachs Emerging | Aqr Long-short vs. Jpmorgan Emerging Markets | Aqr Long-short vs. Pace International Emerging |
| Mfs Blended vs. American Funds The | Mfs Blended vs. American Funds The | Mfs Blended vs. Growth Fund Of | Mfs Blended vs. Growth Fund Of |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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