Correlation Between Aqr Managed and Nebraska Municipal
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Nebraska Municipal 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 Nebraska Municipal 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 Nebraska Municipal Fund, you can compare the effects of market volatilities on Aqr Managed and Nebraska Municipal 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 Nebraska Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Nebraska Municipal.
Diversification Opportunities for Aqr Managed and Nebraska Municipal
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Nebraska is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Nebraska Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nebraska Municipal 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 Nebraska Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nebraska Municipal has no effect on the direction of Aqr Managed i.e., Aqr Managed and Nebraska Municipal go up and down completely randomly.
Pair Corralation between Aqr Managed and Nebraska Municipal
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 2.84 times more return on investment than Nebraska Municipal. However, Aqr Managed is 2.84 times more volatile than Nebraska Municipal Fund. It trades about 0.02 of its potential returns per unit of risk. Nebraska Municipal Fund is currently generating about 0.02 per unit of risk. If you would invest 839.00 in Aqr Managed Futures on October 25, 2024 and sell it today you would earn a total of 2.00 from holding Aqr Managed Futures or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Nebraska Municipal Fund
Performance |
| Timeline |
| Aqr Managed Futures |
| Nebraska Municipal |
Aqr Managed and Nebraska Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Nebraska Municipal
The main advantage of trading using opposite Aqr Managed and Nebraska Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Nebraska Municipal 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 Nebraska Municipal will offset losses from the drop in Nebraska Municipal's long position.| Aqr Managed vs. Adams Natural Resources | Aqr Managed vs. Alpsalerian Energy Infrastructure | Aqr Managed vs. Salient Mlp Energy | Aqr Managed vs. Vanguard Energy Index |
| Nebraska Municipal vs. Aqr Managed Futures | Nebraska Municipal vs. Asg Managed Futures | Nebraska Municipal vs. Inflation Protected Bond Fund | Nebraska Municipal vs. Inflation Protected Bond Fund |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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