Correlation Between Aqr Managed and Mfs Technology
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Mfs Technology 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 Mfs Technology 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 Mfs Technology Fund, you can compare the effects of market volatilities on Aqr Managed and Mfs Technology 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 Mfs Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Mfs Technology.
Diversification Opportunities for Aqr Managed and Mfs Technology
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aqr and Mfs is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Mfs Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Technology 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 Mfs Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Technology has no effect on the direction of Aqr Managed i.e., Aqr Managed and Mfs Technology go up and down completely randomly.
Pair Corralation between Aqr Managed and Mfs Technology
Assuming the 90 days horizon Aqr Managed is expected to generate 1.51 times less return on investment than Mfs Technology. But when comparing it to its historical volatility, Aqr Managed Futures is 1.92 times less risky than Mfs Technology. It trades about 0.03 of its potential returns per unit of risk. Mfs Technology Fund is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,280 in Mfs Technology Fund on October 29, 2024 and sell it today you would earn a total of 266.00 from holding Mfs Technology Fund or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Aqr Managed Futures vs. Mfs Technology Fund
Performance |
| Timeline |
| Aqr Managed Futures |
| Mfs Technology |
Aqr Managed and Mfs Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Mfs Technology
The main advantage of trading using opposite Aqr Managed and Mfs Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Mfs Technology 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 Mfs Technology will offset losses from the drop in Mfs Technology's long position.| Aqr Managed vs. Jpmorgan High Yield | Aqr Managed vs. Msift High Yield | Aqr Managed vs. Strategic Advisers Income | Aqr Managed vs. Transamerica High Yield |
| Mfs Technology vs. Rbc Global Equity | Mfs Technology vs. Rbc Global Opportunities | Mfs Technology vs. Barings Global Floating | Mfs Technology vs. Gmo Global 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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