Correlation Between Aqr Managed and Total Return
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Total Return 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 Total Return 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 Total Return Fund, you can compare the effects of market volatilities on Aqr Managed and Total Return 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 Total Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Total Return.
Diversification Opportunities for Aqr Managed and Total Return
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aqr and Total is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Total Return Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Return 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 Total Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Return has no effect on the direction of Aqr Managed i.e., Aqr Managed and Total Return go up and down completely randomly.
Pair Corralation between Aqr Managed and Total Return
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 2.82 times more return on investment than Total Return. However, Aqr Managed is 2.82 times more volatile than Total Return Fund. It trades about 0.15 of its potential returns per unit of risk. Total Return Fund is currently generating about 0.23 per unit of risk. If you would invest 839.00 in Aqr Managed Futures on November 30, 2024 and sell it today you would earn a total of 50.00 from holding Aqr Managed Futures or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Total Return Fund
Performance |
| Timeline |
| Aqr Managed Futures |
| Total Return |
Aqr Managed and Total Return Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Total Return
The main advantage of trading using opposite Aqr Managed and Total Return positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Total Return 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 Total Return will offset losses from the drop in Total Return's long position.| Aqr Managed vs. Lord Abbett Affiliated | Aqr Managed vs. Tax Managed Large Cap | Aqr Managed vs. Tiaa Cref Large Cap Growth | Aqr Managed vs. Neiman Large Cap |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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