Correlation Between Aqr Managed and American High
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and American High 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 American High 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 American High Income, you can compare the effects of market volatilities on Aqr Managed and American High 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 American High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and American High.
Diversification Opportunities for Aqr Managed and American High
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aqr and AMERICAN is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and American High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American High Income 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 American High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American High Income has no effect on the direction of Aqr Managed i.e., Aqr Managed and American High go up and down completely randomly.
Pair Corralation between Aqr Managed and American High
Assuming the 90 days horizon Aqr Managed Futures is expected to under-perform the American High. In addition to that, Aqr Managed is 4.45 times more volatile than American High Income. It trades about -0.05 of its total potential returns per unit of risk. American High Income is currently generating about 0.2 per unit of volatility. If you would invest 928.00 in American High Income on September 3, 2024 and sell it today you would earn a total of 57.00 from holding American High Income or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. American High Income
Performance |
| Timeline |
| Aqr Managed Futures |
| American High Income |
Aqr Managed and American High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and American High
The main advantage of trading using opposite Aqr Managed and American High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, American High 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 American High will offset losses from the drop in American High's long position.| Aqr Managed vs. The Hartford Equity | Aqr Managed vs. Locorr Dynamic Equity | Aqr Managed vs. Jpmorgan Equity Income | Aqr Managed vs. Multimedia Portfolio Multimedia |
| American High vs. Oklahoma College Savings | American High vs. Aqr Managed Futures | American High vs. Lord Abbett Inflation | American High vs. Aqr Managed Futures |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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