Correlation Between Aqr Managed and Jpmorgan E
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Jpmorgan E 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 Jpmorgan E 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 Jpmorgan E Bond, you can compare the effects of market volatilities on Aqr Managed and Jpmorgan E 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 Jpmorgan E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Jpmorgan E.
Diversification Opportunities for Aqr Managed and Jpmorgan E
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aqr and Jpmorgan is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Jpmorgan E Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan E Bond 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 Jpmorgan E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan E Bond has no effect on the direction of Aqr Managed i.e., Aqr Managed and Jpmorgan E go up and down completely randomly.
Pair Corralation between Aqr Managed and Jpmorgan E
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 3.42 times more return on investment than Jpmorgan E. However, Aqr Managed is 3.42 times more volatile than Jpmorgan E Bond. It trades about 0.21 of its potential returns per unit of risk. Jpmorgan E Bond is currently generating about 0.23 per unit of risk. If you would invest 812.00 in Aqr Managed Futures on September 13, 2024 and sell it today you would earn a total of 32.00 from holding Aqr Managed Futures or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aqr Managed Futures vs. Jpmorgan E Bond
Performance |
| Timeline |
| Aqr Managed Futures |
| Jpmorgan E Bond |
Aqr Managed and Jpmorgan E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Jpmorgan E
The main advantage of trading using opposite Aqr Managed and Jpmorgan E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Jpmorgan E 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 Jpmorgan E will offset losses from the drop in Jpmorgan E's long position.| Aqr Managed vs. Siit Global Managed | Aqr Managed vs. Alliancebernstein Global High | Aqr Managed vs. Scharf Global Opportunity | Aqr Managed vs. Kinetics Global Fund |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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