Correlation Between Aqr Managed and Fidelity New
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Fidelity New 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 Fidelity New 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 Fidelity New Markets, you can compare the effects of market volatilities on Aqr Managed and Fidelity New 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 Fidelity New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Fidelity New.
Diversification Opportunities for Aqr Managed and Fidelity New
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aqr and Fidelity is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Fidelity New Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity New Markets 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 Fidelity New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity New Markets has no effect on the direction of Aqr Managed i.e., Aqr Managed and Fidelity New go up and down completely randomly.
Pair Corralation between Aqr Managed and Fidelity New
Assuming the 90 days horizon Aqr Managed is expected to generate 1.48 times less return on investment than Fidelity New. In addition to that, Aqr Managed is 3.36 times more volatile than Fidelity New Markets. It trades about 0.04 of its total potential returns per unit of risk. Fidelity New Markets is currently generating about 0.18 per unit of volatility. If you would invest 1,273 in Fidelity New Markets on November 5, 2024 and sell it today you would earn a total of 13.00 from holding Fidelity New Markets or generate 1.02% 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. Fidelity New Markets
Performance |
| Timeline |
| Aqr Managed Futures |
| Fidelity New Markets |
Aqr Managed and Fidelity New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Fidelity New
The main advantage of trading using opposite Aqr Managed and Fidelity New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Fidelity New 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 Fidelity New will offset losses from the drop in Fidelity New'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 |
| Fidelity New vs. Vanguard Information Technology | Fidelity New vs. Science Technology Fund | Fidelity New vs. Allianzgi Technology Fund | Fidelity New vs. Hennessy Technology Fund |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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