Correlation Between Aqr Managed and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Mainstay Balanced 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 Mainstay Balanced 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 Mainstay Balanced Fund, you can compare the effects of market volatilities on Aqr Managed and Mainstay Balanced 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 Mainstay Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Mainstay Balanced.
Diversification Opportunities for Aqr Managed and Mainstay Balanced
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqr and Mainstay is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced 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 Mainstay Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Balanced has no effect on the direction of Aqr Managed i.e., Aqr Managed and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Aqr Managed and Mainstay Balanced
Assuming the 90 days horizon Aqr Managed is expected to generate 1.5 times less return on investment than Mainstay Balanced. In addition to that, Aqr Managed is 1.75 times more volatile than Mainstay Balanced Fund. It trades about 0.13 of its total potential returns per unit of risk. Mainstay Balanced Fund is currently generating about 0.35 per unit of volatility. If you would invest 3,129 in Mainstay Balanced Fund on September 2, 2024 and sell it today you would earn a total of 115.00 from holding Mainstay Balanced Fund or generate 3.68% 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. Mainstay Balanced Fund
Performance |
| Timeline |
| Aqr Managed Futures |
| Mainstay Balanced |
Aqr Managed and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Mainstay Balanced
The main advantage of trading using opposite Aqr Managed and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Mainstay Balanced 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 Mainstay Balanced will offset losses from the drop in Mainstay Balanced'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 |
| Mainstay Balanced vs. Fidelity Capital Income | Mainstay Balanced vs. Legg Mason Partners | Mainstay Balanced vs. Gmo High Yield | Mainstay Balanced vs. Msift High Yield |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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