Correlation Between Aqr Managed and Voya Intermediate
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Voya Intermediate 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 Voya Intermediate 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 Voya Intermediate Bond, you can compare the effects of market volatilities on Aqr Managed and Voya Intermediate 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 Voya Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Voya Intermediate.
Diversification Opportunities for Aqr Managed and Voya Intermediate
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AQR and Voya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Voya Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Intermediate Bond 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 Voya Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Intermediate Bond has no effect on the direction of Aqr Managed i.e., Aqr Managed and Voya Intermediate go up and down completely randomly.
Pair Corralation between Aqr Managed and Voya Intermediate
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 2.36 times more return on investment than Voya Intermediate. However, Aqr Managed is 2.36 times more volatile than Voya Intermediate Bond. It trades about 0.16 of its potential returns per unit of risk. Voya Intermediate Bond is currently generating about 0.09 per unit of risk. If you would invest 790.00 in Aqr Managed Futures on September 1, 2024 and sell it today you would earn a total of 23.00 from holding Aqr Managed Futures or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aqr Managed Futures vs. Voya Intermediate Bond
Performance |
| Timeline |
| Aqr Managed Futures |
| Voya Intermediate Bond |
Aqr Managed and Voya Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Voya Intermediate
The main advantage of trading using opposite Aqr Managed and Voya Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Voya Intermediate 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 Voya Intermediate will offset losses from the drop in Voya Intermediate's long position.| Aqr Managed vs. Aqr Large Cap | Aqr Managed vs. Aqr Large Cap | Aqr Managed vs. Aqr International Defensive | Aqr Managed vs. Aqr International Defensive |
| Voya Intermediate vs. Fidelity Advisor Technology | Voya Intermediate vs. Icon Information Technology | Voya Intermediate vs. Blackrock Science Technology | Voya Intermediate vs. Mfs 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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