Correlation Between Aqr Managed and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Janus Henderson 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 Janus Henderson 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 Janus Henderson Research, you can compare the effects of market volatilities on Aqr Managed and Janus Henderson 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 Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Janus Henderson.
Diversification Opportunities for Aqr Managed and Janus Henderson
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aqr and Janus is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Janus Henderson Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Research 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 Janus Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Henderson Research has no effect on the direction of Aqr Managed i.e., Aqr Managed and Janus Henderson go up and down completely randomly.
Pair Corralation between Aqr Managed and Janus Henderson
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 0.64 times more return on investment than Janus Henderson. However, Aqr Managed Futures is 1.57 times less risky than Janus Henderson. It trades about 0.19 of its potential returns per unit of risk. Janus Henderson Research is currently generating about -0.06 per unit of risk. If you would invest 821.00 in Aqr Managed Futures on September 15, 2024 and sell it today you would earn a total of 28.00 from holding Aqr Managed Futures or generate 3.41% 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. Janus Henderson Research
Performance |
| Timeline |
| Aqr Managed Futures |
| Janus Henderson Research |
Aqr Managed and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Janus Henderson
The main advantage of trading using opposite Aqr Managed and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Janus Henderson 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 Janus Henderson will offset losses from the drop in Janus Henderson'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 |
| Janus Henderson vs. American Funds Inflation | Janus Henderson vs. Ab Bond Inflation | Janus Henderson vs. Aqr Managed Futures | Janus Henderson vs. Federated Hermes Inflation |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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