Correlation Between Aqr Managed and Simt Multi
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Simt Multi 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 Simt Multi 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 Simt Multi Asset Inflation, you can compare the effects of market volatilities on Aqr Managed and Simt Multi 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 Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Simt Multi.
Diversification Opportunities for Aqr Managed and Simt Multi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aqr and Simt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Simt Multi Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Simt Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Aqr Managed i.e., Aqr Managed and Simt Multi go up and down completely randomly.
Pair Corralation between Aqr Managed and Simt Multi
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 3.63 times more return on investment than Simt Multi. However, Aqr Managed is 3.63 times more volatile than Simt Multi Asset Inflation. It trades about 0.04 of its potential returns per unit of risk. Simt Multi Asset Inflation is currently generating about 0.07 per unit of risk. If you would invest 755.00 in Aqr Managed Futures on September 12, 2024 and sell it today you would earn a total of 82.00 from holding Aqr Managed Futures or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Simt Multi Asset Inflation
Performance |
| Timeline |
| Aqr Managed Futures |
| Simt Multi Asset |
Aqr Managed and Simt Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Simt Multi
The main advantage of trading using opposite Aqr Managed and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Simt Multi 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 Simt Multi will offset losses from the drop in Simt Multi's long position.| Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. SCOR PK | Aqr Managed vs. Morningstar Unconstrained Allocation |
| Simt Multi vs. Capital Income Builder | Simt Multi vs. Capital Income Builder | Simt Multi vs. Capital Income Builder | Simt Multi vs. Capital Income Builder |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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