Correlation Between Aqr Managed and Global Core
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Global Core 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 Global Core 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 Global E Portfolio, you can compare the effects of market volatilities on Aqr Managed and Global Core 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 Global Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Global Core.
Diversification Opportunities for Aqr Managed and Global Core
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aqr and Global is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Global E Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Portfolio 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 Global Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Portfolio has no effect on the direction of Aqr Managed i.e., Aqr Managed and Global Core go up and down completely randomly.
Pair Corralation between Aqr Managed and Global Core
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 0.79 times more return on investment than Global Core. However, Aqr Managed Futures is 1.27 times less risky than Global Core. It trades about 0.2 of its potential returns per unit of risk. Global E Portfolio is currently generating about -0.22 per unit of risk. If you would invest 825.00 in Aqr Managed Futures on October 12, 2024 and sell it today you would earn a total of 22.00 from holding Aqr Managed Futures or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Global E Portfolio
Performance |
| Timeline |
| Aqr Managed Futures |
| Global E Portfolio |
Aqr Managed and Global Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Global Core
The main advantage of trading using opposite Aqr Managed and Global Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Global Core 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 Global Core will offset losses from the drop in Global Core's long position.| Aqr Managed vs. Short Precious Metals | Aqr Managed vs. The Gold Bullion | Aqr Managed vs. Invesco Gold Special | Aqr Managed vs. Fidelity Advisor Gold |
| Global Core vs. Guggenheim Managed Futures | Global Core vs. Atac Inflation Rotation | Global Core vs. Inflation Protected Bond Fund | Global Core 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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