Correlation Between Aqr Managed and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Massmutual Select 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 Massmutual Select 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 Massmutual Select T, you can compare the effects of market volatilities on Aqr Managed and Massmutual Select 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 Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Massmutual Select.
Diversification Opportunities for Aqr Managed and Massmutual Select
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqr and Massmutual is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Massmutual Select T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select 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 Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select has no effect on the direction of Aqr Managed i.e., Aqr Managed and Massmutual Select go up and down completely randomly.
Pair Corralation between Aqr Managed and Massmutual Select
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 2.3 times more return on investment than Massmutual Select. However, Aqr Managed is 2.3 times more volatile than Massmutual Select T. It trades about 0.17 of its potential returns per unit of risk. Massmutual Select T is currently generating about 0.29 per unit of risk. If you would invest 794.00 in Aqr Managed Futures on September 3, 2024 and sell it today you would earn a total of 23.00 from holding Aqr Managed Futures or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Massmutual Select T
Performance |
| Timeline |
| Aqr Managed Futures |
| Massmutual Select |
Aqr Managed and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Massmutual Select
The main advantage of trading using opposite Aqr Managed and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| Aqr Managed vs. The Hartford Equity | Aqr Managed vs. Locorr Dynamic Equity | Aqr Managed vs. Jpmorgan Equity Income | Aqr Managed vs. Multimedia Portfolio Multimedia |
| Massmutual Select vs. Fidelity Sai Inflationfocused | Massmutual Select vs. Ab Bond Inflation | Massmutual Select vs. Aqr Managed Futures | Massmutual Select 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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