Correlation Between Aqr Managed and Templeton Foreign
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Templeton Foreign 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 Templeton Foreign 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 Templeton Foreign Fund, you can compare the effects of market volatilities on Aqr Managed and Templeton Foreign 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 Templeton Foreign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Templeton Foreign.
Diversification Opportunities for Aqr Managed and Templeton Foreign
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aqr and Templeton is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Templeton Foreign Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Foreign 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 Templeton Foreign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Foreign has no effect on the direction of Aqr Managed i.e., Aqr Managed and Templeton Foreign go up and down completely randomly.
Pair Corralation between Aqr Managed and Templeton Foreign
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 0.97 times more return on investment than Templeton Foreign. However, Aqr Managed Futures is 1.03 times less risky than Templeton Foreign. It trades about 0.04 of its potential returns per unit of risk. Templeton Foreign Fund is currently generating about 0.02 per unit of risk. If you would invest 724.00 in Aqr Managed Futures on October 27, 2024 and sell it today you would earn a total of 111.00 from holding Aqr Managed Futures or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Templeton Foreign Fund
Performance |
| Timeline |
| Aqr Managed Futures |
| Templeton Foreign |
Aqr Managed and Templeton Foreign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Templeton Foreign
The main advantage of trading using opposite Aqr Managed and Templeton Foreign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Templeton Foreign 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 Templeton Foreign will offset losses from the drop in Templeton Foreign's long position.| Aqr Managed vs. Artisan High Income | Aqr Managed vs. Payden High Income | Aqr Managed vs. Tiaa Cref High Yield Fund | Aqr Managed vs. City National Rochdale |
| Templeton Foreign vs. Ridgeworth Seix Government | Templeton Foreign vs. Franklin Adjustable Government | Templeton Foreign vs. Lord Abbett Government | Templeton Foreign vs. Elfun Government Money |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |