Correlation Between Aqr Managed and L Abbett
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and L Abbett 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 L Abbett 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 L Abbett Fundamental, you can compare the effects of market volatilities on Aqr Managed and L Abbett 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 L Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and L Abbett.
Diversification Opportunities for Aqr Managed and L Abbett
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aqr and LAVVX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and L Abbett Fundamental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L Abbett Fundamental 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 L Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L Abbett Fundamental has no effect on the direction of Aqr Managed i.e., Aqr Managed and L Abbett go up and down completely randomly.
Pair Corralation between Aqr Managed and L Abbett
Assuming the 90 days horizon Aqr Managed Futures is expected to under-perform the L Abbett. In addition to that, Aqr Managed is 1.03 times more volatile than L Abbett Fundamental. It trades about -0.01 of its total potential returns per unit of risk. L Abbett Fundamental is currently generating about 0.38 per unit of volatility. If you would invest 1,519 in L Abbett Fundamental on October 19, 2024 and sell it today you would earn a total of 77.00 from holding L Abbett Fundamental or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. L Abbett Fundamental
Performance |
| Timeline |
| Aqr Managed Futures |
| L Abbett Fundamental |
Aqr Managed and L Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and L Abbett
The main advantage of trading using opposite Aqr Managed and L Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, L Abbett 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 L Abbett will offset losses from the drop in L Abbett's long position.| Aqr Managed vs. Oshaughnessy Market Leaders | Aqr Managed vs. Aqr Sustainable Long Short | Aqr Managed vs. Siit Emerging Markets | Aqr Managed vs. Delaware Limited Term Diversified |
| L Abbett vs. Guidepath Managed Futures | L Abbett vs. Great West Inflation Protected Securities | L Abbett vs. Aqr Managed Futures | L Abbett vs. Ab Bond 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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