Correlation Between Aqr Managed and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Mfs Lifetime 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 Mfs Lifetime 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 Mfs Lifetime 2065, you can compare the effects of market volatilities on Aqr Managed and Mfs Lifetime 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 Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Mfs Lifetime.
Diversification Opportunities for Aqr Managed and Mfs Lifetime
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aqr and Mfs is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Mfs Lifetime 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2065 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 Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime 2065 has no effect on the direction of Aqr Managed i.e., Aqr Managed and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Aqr Managed and Mfs Lifetime
Assuming the 90 days horizon Aqr Managed is expected to generate 2.63 times less return on investment than Mfs Lifetime. In addition to that, Aqr Managed is 1.32 times more volatile than Mfs Lifetime 2065. It trades about 0.02 of its total potential returns per unit of risk. Mfs Lifetime 2065 is currently generating about 0.09 per unit of volatility. If you would invest 801.00 in Mfs Lifetime 2065 on September 4, 2024 and sell it today you would earn a total of 268.00 from holding Mfs Lifetime 2065 or generate 33.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Aqr Managed Futures vs. Mfs Lifetime 2065
Performance |
| Timeline |
| Aqr Managed Futures |
| Mfs Lifetime 2065 |
Aqr Managed and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Mfs Lifetime
The main advantage of trading using opposite Aqr Managed and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Mfs Lifetime 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 Mfs Lifetime will offset losses from the drop in Mfs Lifetime's long position.| Aqr Managed vs. T Rowe Price | Aqr Managed vs. Falcon Focus Scv | Aqr Managed vs. Iaadx | Aqr Managed vs. Leggmason Partners Institutional |
| Mfs Lifetime vs. California High Yield Municipal | Mfs Lifetime vs. Ab Impact Municipal | Mfs Lifetime vs. Franklin High Yield | Mfs Lifetime vs. Bbh Intermediate Municipal |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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