Correlation Between Aqr Managed and Ubs Us
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Ubs Us 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 Ubs Us 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 Ubs Quality Growth, you can compare the effects of market volatilities on Aqr Managed and Ubs Us 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 Ubs Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Ubs Us.
Diversification Opportunities for Aqr Managed and Ubs Us
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AQR and Ubs is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Ubs Quality Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Quality Growth 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 Ubs Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Quality Growth has no effect on the direction of Aqr Managed i.e., Aqr Managed and Ubs Us go up and down completely randomly.
Pair Corralation between Aqr Managed and Ubs Us
Assuming the 90 days horizon Aqr Managed is expected to generate 4.44 times less return on investment than Ubs Us. But when comparing it to its historical volatility, Aqr Managed Futures is 1.07 times less risky than Ubs Us. It trades about 0.03 of its potential returns per unit of risk. Ubs Quality Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,374 in Ubs Quality Growth on September 2, 2024 and sell it today you would earn a total of 401.00 from holding Ubs Quality Growth or generate 29.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Ubs Quality Growth
Performance |
| Timeline |
| Aqr Managed Futures |
| Ubs Quality Growth |
Aqr Managed and Ubs Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Ubs Us
The main advantage of trading using opposite Aqr Managed and Ubs Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Ubs Us 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 Ubs Us will offset losses from the drop in Ubs Us' 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 |
| Ubs Us vs. Pace Smallmedium Value | Ubs Us vs. Pace International Equity | Ubs Us vs. Pace International Equity | Ubs Us vs. Ubs Allocation 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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