Correlation Between Aqr Managed and Guggenheim High
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Guggenheim High 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 Guggenheim High 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 Guggenheim High Yield, you can compare the effects of market volatilities on Aqr Managed and Guggenheim High 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 Guggenheim High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Guggenheim High.
Diversification Opportunities for Aqr Managed and Guggenheim High
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqr and Guggenheim is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Guggenheim High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim High Yield 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 Guggenheim High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim High Yield has no effect on the direction of Aqr Managed i.e., Aqr Managed and Guggenheim High go up and down completely randomly.
Pair Corralation between Aqr Managed and Guggenheim High
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 5.63 times more return on investment than Guggenheim High. However, Aqr Managed is 5.63 times more volatile than Guggenheim High Yield. It trades about 0.08 of its potential returns per unit of risk. Guggenheim High Yield is currently generating about 0.19 per unit of risk. If you would invest 817.00 in Aqr Managed Futures on September 20, 2024 and sell it today you would earn a total of 14.00 from holding Aqr Managed Futures or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Guggenheim High Yield
Performance |
| Timeline |
| Aqr Managed Futures |
| Guggenheim High Yield |
Aqr Managed and Guggenheim High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Guggenheim High
The main advantage of trading using opposite Aqr Managed and Guggenheim High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Guggenheim High 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 Guggenheim High will offset losses from the drop in Guggenheim High's long position.| Aqr Managed vs. Goldman Sachs Financial | Aqr Managed vs. Transamerica Financial Life | Aqr Managed vs. Icon Financial Fund | Aqr Managed vs. Gabelli Global Financial |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |