Correlation Between Aqr Managed and The Hartford
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and The Hartford 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 The Hartford 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 The Hartford Inflation, you can compare the effects of market volatilities on Aqr Managed and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and The Hartford.
Diversification Opportunities for Aqr Managed and The Hartford
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aqr and The is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and The Hartford Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Inflation 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Inflation has no effect on the direction of Aqr Managed i.e., Aqr Managed and The Hartford go up and down completely randomly.
Pair Corralation between Aqr Managed and The Hartford
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 3.7 times more return on investment than The Hartford. However, Aqr Managed is 3.7 times more volatile than The Hartford Inflation. It trades about 0.07 of its potential returns per unit of risk. The Hartford Inflation is currently generating about -0.03 per unit of risk. If you would invest 795.00 in Aqr Managed Futures on September 2, 2024 and sell it today you would earn a total of 26.00 from holding Aqr Managed Futures or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. The Hartford Inflation
Performance |
| Timeline |
| Aqr Managed Futures |
| The Hartford Inflation |
Aqr Managed and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and The Hartford
The main advantage of trading using opposite Aqr Managed and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Aqr Managed vs. Growth Strategy Fund | Aqr Managed vs. Artisan Emerging Markets | Aqr Managed vs. Shelton Emerging Markets | Aqr Managed vs. Franklin Emerging Market |
| The Hartford vs. Hartford Growth Opportunities | The Hartford vs. The Hartford Growth | The Hartford vs. Hartford Global Impact | The Hartford vs. Hartford Global Impact |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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