Correlation Between Aqr Managed and Marsico Growth
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Marsico Growth 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 Marsico Growth 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 Marsico Growth, you can compare the effects of market volatilities on Aqr Managed and Marsico Growth 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 Marsico Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Marsico Growth.
Diversification Opportunities for Aqr Managed and Marsico Growth
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aqr and Marsico is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Marsico Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marsico Growth 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 Marsico Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marsico Growth has no effect on the direction of Aqr Managed i.e., Aqr Managed and Marsico Growth go up and down completely randomly.
Pair Corralation between Aqr Managed and Marsico Growth
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 1.01 times more return on investment than Marsico Growth. However, Aqr Managed is 1.01 times more volatile than Marsico Growth. It trades about 0.15 of its potential returns per unit of risk. Marsico Growth is currently generating about 0.13 per unit of risk. If you would invest 816.00 in Aqr Managed Futures on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Aqr Managed Futures or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Marsico Growth
Performance |
| Timeline |
| Aqr Managed Futures |
| Marsico Growth |
Aqr Managed and Marsico Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Marsico Growth
The main advantage of trading using opposite Aqr Managed and Marsico Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Marsico Growth 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 Marsico Growth will offset losses from the drop in Marsico Growth's long position.| Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. SCOR PK | Aqr Managed vs. Morningstar Unconstrained Allocation |
| Marsico Growth vs. Ab Bond Inflation | Marsico Growth vs. Goldman Sachs Inflation | Marsico Growth vs. Ab Bond Inflation | Marsico Growth vs. Aqr Managed Futures |
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 Stocks Directory module to find actively traded stocks across global markets.
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