Correlation Between Aqr Managed and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Eaton Vance 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 Eaton Vance 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 Eaton Vance Municipal, you can compare the effects of market volatilities on Aqr Managed and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Eaton Vance.
Diversification Opportunities for Aqr Managed and Eaton Vance
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aqr and Eaton is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Eaton Vance Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Municipal 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Municipal has no effect on the direction of Aqr Managed i.e., Aqr Managed and Eaton Vance go up and down completely randomly.
Pair Corralation between Aqr Managed and Eaton Vance
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 4.24 times more return on investment than Eaton Vance. However, Aqr Managed is 4.24 times more volatile than Eaton Vance Municipal. It trades about 0.04 of its potential returns per unit of risk. Eaton Vance Municipal is currently generating about 0.1 per unit of risk. If you would invest 773.00 in Aqr Managed Futures on September 12, 2024 and sell it today you would earn a total of 64.00 from holding Aqr Managed Futures or generate 8.28% 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. Eaton Vance Municipal
Performance |
| Timeline |
| Aqr Managed Futures |
| Eaton Vance Municipal |
Aqr Managed and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Eaton Vance
The main advantage of trading using opposite Aqr Managed and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance'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 |
| Eaton Vance vs. Atac Inflation Rotation | Eaton Vance vs. Guidepath Managed Futures | Eaton Vance vs. Loomis Sayles Inflation | Eaton Vance 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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