Correlation Between Aqr Managed and Franklin Oregon
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Franklin Oregon 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 Franklin Oregon 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 Franklin Oregon Tax Free, you can compare the effects of market volatilities on Aqr Managed and Franklin Oregon 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 Franklin Oregon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Franklin Oregon.
Diversification Opportunities for Aqr Managed and Franklin Oregon
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aqr and Franklin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Franklin Oregon Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Oregon Tax 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 Franklin Oregon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Oregon Tax has no effect on the direction of Aqr Managed i.e., Aqr Managed and Franklin Oregon go up and down completely randomly.
Pair Corralation between Aqr Managed and Franklin Oregon
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 2.71 times more return on investment than Franklin Oregon. However, Aqr Managed is 2.71 times more volatile than Franklin Oregon Tax Free. It trades about 0.17 of its potential returns per unit of risk. Franklin Oregon Tax Free is currently generating about 0.17 per unit of risk. If you would invest 794.00 in Aqr Managed Futures on September 3, 2024 and sell it today you would earn a total of 23.00 from holding Aqr Managed Futures or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Franklin Oregon Tax Free
Performance |
| Timeline |
| Aqr Managed Futures |
| Franklin Oregon Tax |
Aqr Managed and Franklin Oregon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Franklin Oregon
The main advantage of trading using opposite Aqr Managed and Franklin Oregon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Franklin Oregon 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 Franklin Oregon will offset losses from the drop in Franklin Oregon'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 |
| Franklin Oregon vs. John Hancock Financial | Franklin Oregon vs. Vanguard Financials Index | Franklin Oregon vs. Transamerica Financial Life | Franklin Oregon vs. Financials Ultrasector Profund |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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