Correlation Between Aqr Managed and Mainstay New
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Mainstay New 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 Mainstay New 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 Mainstay New York, you can compare the effects of market volatilities on Aqr Managed and Mainstay New 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 Mainstay New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Mainstay New.
Diversification Opportunities for Aqr Managed and Mainstay New
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AQR and Mainstay is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Mainstay New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay New York 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 Mainstay New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay New York has no effect on the direction of Aqr Managed i.e., Aqr Managed and Mainstay New go up and down completely randomly.
Pair Corralation between Aqr Managed and Mainstay New
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 3.39 times more return on investment than Mainstay New. However, Aqr Managed is 3.39 times more volatile than Mainstay New York. It trades about 0.03 of its potential returns per unit of risk. Mainstay New York is currently generating about 0.08 per unit of risk. If you would invest 762.00 in Aqr Managed Futures on September 2, 2024 and sell it today you would earn a total of 55.00 from holding Aqr Managed Futures or generate 7.22% 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. Mainstay New York
Performance |
| Timeline |
| Aqr Managed Futures |
| Mainstay New York |
Aqr Managed and Mainstay New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Mainstay New
The main advantage of trading using opposite Aqr Managed and Mainstay New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Mainstay New 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 Mainstay New will offset losses from the drop in Mainstay New'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 |
| Mainstay New vs. Huber Capital Equity | Mainstay New vs. Small Cap Equity | Mainstay New vs. Ultra Short Fixed Income | Mainstay New vs. Cutler Equity |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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