Correlation Between Aqr Managed and Pnc International
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Pnc International 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 Pnc International 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 Pnc International Equity, you can compare the effects of market volatilities on Aqr Managed and Pnc International 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 Pnc International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Pnc International.
Diversification Opportunities for Aqr Managed and Pnc International
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AQR and Pnc is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Pnc International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pnc International Equity 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 Pnc International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pnc International Equity has no effect on the direction of Aqr Managed i.e., Aqr Managed and Pnc International go up and down completely randomly.
Pair Corralation between Aqr Managed and Pnc International
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 1.3 times more return on investment than Pnc International. However, Aqr Managed is 1.3 times more volatile than Pnc International Equity. It trades about 0.14 of its potential returns per unit of risk. Pnc International Equity is currently generating about -0.02 per unit of risk. If you would invest 798.00 in Aqr Managed Futures on September 2, 2024 and sell it today you would earn a total of 19.00 from holding Aqr Managed Futures or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Pnc International Equity
Performance |
| Timeline |
| Aqr Managed Futures |
| Pnc International Equity |
Aqr Managed and Pnc International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Pnc International
The main advantage of trading using opposite Aqr Managed and Pnc International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Pnc International 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 Pnc International will offset losses from the drop in Pnc International'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 |
| Pnc International vs. Federated Emerging Market | Pnc International vs. Federated Mdt All | Pnc International vs. Federated Mdt Balanced | Pnc International vs. Federated Global Allocation |
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.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |