Correlation Between Aqr Managed and Jacob Funds
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Jacob Funds 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 Jacob Funds 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 Jacob Funds , you can compare the effects of market volatilities on Aqr Managed and Jacob Funds 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 Jacob Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Jacob Funds.
Diversification Opportunities for Aqr Managed and Jacob Funds
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aqr and Jacob is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Jacob Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Funds 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 Jacob Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Funds has no effect on the direction of Aqr Managed i.e., Aqr Managed and Jacob Funds go up and down completely randomly.
Pair Corralation between Aqr Managed and Jacob Funds
If you would invest 812.00 in Aqr Managed Futures on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Aqr Managed Futures or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aqr Managed Futures vs. Jacob Funds
Performance |
| Timeline |
| Aqr Managed Futures |
| Jacob Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aqr Managed and Jacob Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Jacob Funds
The main advantage of trading using opposite Aqr Managed and Jacob Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Jacob Funds 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 Jacob Funds will offset losses from the drop in Jacob Funds' long position.| Aqr Managed vs. Ab Discovery Value | Aqr Managed vs. Heartland Value Plus | Aqr Managed vs. Ab Small Cap | Aqr Managed vs. Fpa Queens Road |
| Jacob Funds vs. Franklin Small Cap | Jacob Funds vs. Pace Smallmedium Value | Jacob Funds vs. Lebenthal Lisanti Small | Jacob Funds vs. Guidemark Smallmid Cap |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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