Correlation Between Aqr Managed and Fisher All
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Fisher All 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 Fisher All 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 Fisher All Foreign, you can compare the effects of market volatilities on Aqr Managed and Fisher All 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 Fisher All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Fisher All.
Diversification Opportunities for Aqr Managed and Fisher All
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AQR and Fisher is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Fisher All Foreign in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher All Foreign 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 Fisher All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher All Foreign has no effect on the direction of Aqr Managed i.e., Aqr Managed and Fisher All go up and down completely randomly.
Pair Corralation between Aqr Managed and Fisher All
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 1.12 times more return on investment than Fisher All. However, Aqr Managed is 1.12 times more volatile than Fisher All Foreign. It trades about 0.26 of its potential returns per unit of risk. Fisher All Foreign is currently generating about 0.08 per unit of risk. If you would invest 838.00 in Aqr Managed Futures on December 1, 2024 and sell it today you would earn a total of 45.00 from holding Aqr Managed Futures or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Fisher All Foreign
Performance |
| Timeline |
| Aqr Managed Futures |
| Fisher All Foreign |
Aqr Managed and Fisher All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Fisher All
The main advantage of trading using opposite Aqr Managed and Fisher All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Fisher All 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 Fisher All will offset losses from the drop in Fisher All's long position.| Aqr Managed vs. Virtus High Yield | Aqr Managed vs. Gmo High Yield | Aqr Managed vs. Artisan High Income | Aqr Managed vs. Alpine High Yield |
| Fisher All vs. John Hancock Variable | Fisher All vs. Lord Abbett Health | Fisher All vs. Putnam Global Health | Fisher All vs. Deutsche Health And |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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