Correlation Between Aqr Managed and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Manning Napier 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 Manning Napier 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 Manning Napier Diversified, you can compare the effects of market volatilities on Aqr Managed and Manning Napier 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 Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Manning Napier.
Diversification Opportunities for Aqr Managed and Manning Napier
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AQR and Manning is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Manning Napier Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Diver 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 Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier Diver has no effect on the direction of Aqr Managed i.e., Aqr Managed and Manning Napier go up and down completely randomly.
Pair Corralation between Aqr Managed and Manning Napier
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 3.69 times more return on investment than Manning Napier. However, Aqr Managed is 3.69 times more volatile than Manning Napier Diversified. It trades about 0.16 of its potential returns per unit of risk. Manning Napier Diversified is currently generating about 0.22 per unit of risk. If you would invest 790.00 in Aqr Managed Futures on September 1, 2024 and sell it today you would earn a total of 23.00 from holding Aqr Managed Futures or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Manning Napier Diversified
Performance |
| Timeline |
| Aqr Managed Futures |
| Manning Napier Diver |
Aqr Managed and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Manning Napier
The main advantage of trading using opposite Aqr Managed and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Manning Napier 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 Manning Napier will offset losses from the drop in Manning Napier's long position.| Aqr Managed vs. Aqr Large Cap | Aqr Managed vs. Aqr Large Cap | Aqr Managed vs. Aqr International Defensive | Aqr Managed vs. Aqr International Defensive |
| Manning Napier vs. T Rowe Price | Manning Napier vs. Morningstar Unconstrained Allocation | Manning Napier vs. Old Westbury Large | Manning Napier vs. Principal Lifetime Hybrid |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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