Correlation Between Aqr Managed and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Baillie Gifford 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 Baillie Gifford 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 Baillie Gifford Health, you can compare the effects of market volatilities on Aqr Managed and Baillie Gifford 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 Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Baillie Gifford.
Diversification Opportunities for Aqr Managed and Baillie Gifford
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aqr and Baillie is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Baillie Gifford Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Health 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 Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford Health has no effect on the direction of Aqr Managed i.e., Aqr Managed and Baillie Gifford go up and down completely randomly.
Pair Corralation between Aqr Managed and Baillie Gifford
If you would invest 837.00 in Aqr Managed Futures on November 5, 2024 and sell it today you would earn a total of 5.00 from holding Aqr Managed Futures or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Baillie Gifford Health
Performance |
| Timeline |
| Aqr Managed Futures |
| Baillie Gifford Health |
Aqr Managed and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Baillie Gifford
The main advantage of trading using opposite Aqr Managed and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.| Aqr Managed vs. Nasdaq 100 2x Strategy | Aqr Managed vs. Federated Emerging Market | Aqr Managed vs. Barings Emerging Markets | Aqr Managed vs. Siit Emerging Markets |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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