Correlation Between Aqr Managed and Ladenburg Aggressive
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Ladenburg Aggressive 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 Ladenburg Aggressive 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 Ladenburg Aggressive Growth, you can compare the effects of market volatilities on Aqr Managed and Ladenburg Aggressive 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 Ladenburg Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Ladenburg Aggressive.
Diversification Opportunities for Aqr Managed and Ladenburg Aggressive
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aqr and Ladenburg is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Ladenburg Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Aggressive 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 Ladenburg Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Aggressive has no effect on the direction of Aqr Managed i.e., Aqr Managed and Ladenburg Aggressive go up and down completely randomly.
Pair Corralation between Aqr Managed and Ladenburg Aggressive
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 0.32 times more return on investment than Ladenburg Aggressive. However, Aqr Managed Futures is 3.13 times less risky than Ladenburg Aggressive. It trades about 0.16 of its potential returns per unit of risk. Ladenburg Aggressive Growth is currently generating about -0.11 per unit of risk. If you would invest 834.00 in Aqr Managed Futures on October 20, 2024 and sell it today you would earn a total of 16.00 from holding Aqr Managed Futures or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Ladenburg Aggressive Growth
Performance |
| Timeline |
| Aqr Managed Futures |
| Ladenburg Aggressive |
Aqr Managed and Ladenburg Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Ladenburg Aggressive
The main advantage of trading using opposite Aqr Managed and Ladenburg Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Ladenburg Aggressive 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 Ladenburg Aggressive will offset losses from the drop in Ladenburg Aggressive's long position.| Aqr Managed vs. World Energy Fund | Aqr Managed vs. Salient Mlp Energy | Aqr Managed vs. Pimco Energy Tactical | Aqr Managed vs. Ivy Natural Resources |
| Ladenburg Aggressive vs. Fidelity Large Cap | Ladenburg Aggressive vs. Qs Large Cap | Ladenburg Aggressive vs. Avantis Large Cap | Ladenburg Aggressive vs. Guidemark Large 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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