Correlation Between Aqr Managed and Guidemark Large
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Guidemark Large 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 Guidemark Large 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 Guidemark Large Cap, you can compare the effects of market volatilities on Aqr Managed and Guidemark Large 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 Guidemark Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Guidemark Large.
Diversification Opportunities for Aqr Managed and Guidemark Large
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between AQR and Guidemark is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Guidemark Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidemark Large Cap 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 Guidemark Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidemark Large Cap has no effect on the direction of Aqr Managed i.e., Aqr Managed and Guidemark Large go up and down completely randomly.
Pair Corralation between Aqr Managed and Guidemark Large
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 1.09 times more return on investment than Guidemark Large. However, Aqr Managed is 1.09 times more volatile than Guidemark Large Cap. It trades about 0.07 of its potential returns per unit of risk. Guidemark Large Cap is currently generating about -0.14 per unit of risk. If you would invest 802.00 in Aqr Managed Futures on August 31, 2024 and sell it today you would earn a total of 11.00 from holding Aqr Managed Futures or generate 1.37% 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. Guidemark Large Cap
Performance |
| Timeline |
| Aqr Managed Futures |
| Guidemark Large Cap |
Aqr Managed and Guidemark Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Guidemark Large
The main advantage of trading using opposite Aqr Managed and Guidemark Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Guidemark Large 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 Guidemark Large will offset losses from the drop in Guidemark Large's long position.| Aqr Managed vs. Aqr Managed Futures | Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. American Beacon Ahl |
| Guidemark Large vs. Pear Tree Polaris | Guidemark Large vs. Artisan High Income | Guidemark Large vs. HUMANA INC | Guidemark Large vs. Aquagold International |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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