Correlation Between Aqr Managed and Ab Global
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Ab Global 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 Managed and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Managed Futures and Ab Global Real, you can compare the effects of market volatilities on Aqr Managed and Ab Global 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 Managed with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Ab Global.
Diversification Opportunities for Aqr Managed and Ab Global
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aqr and AEEIX is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Ab Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Real and Aqr Managed 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 Managed Futures are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Real has no effect on the direction of Aqr Managed i.e., Aqr Managed and Ab Global go up and down completely randomly.
Pair Corralation between Aqr Managed and Ab Global
Assuming the 90 days horizon Aqr Managed is expected to generate 1.03 times less return on investment than Ab Global. But when comparing it to its historical volatility, Aqr Managed Futures is 1.06 times less risky than Ab Global. It trades about 0.04 of its potential returns per unit of risk. Ab Global Real is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,350 in Ab Global Real on September 12, 2024 and sell it today you would earn a total of 149.00 from holding Ab Global Real or generate 11.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Ab Global Real
Performance |
| Timeline |
| Aqr Managed Futures |
| Ab Global Real |
Aqr Managed and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Ab Global
The main advantage of trading using opposite Aqr Managed and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. SCOR PK | Aqr Managed vs. Morningstar Unconstrained Allocation |
| Ab Global vs. Pro Blend Moderate Term | Ab Global vs. Jp Morgan Smartretirement | Ab Global vs. Blackrock Moderate Prepared | Ab Global vs. Strategic Allocation Moderate |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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