Correlation Between Aqr Managed and Inverse Nasdaq
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Inverse Nasdaq 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 Inverse Nasdaq 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 Inverse Nasdaq 100 Strategy, you can compare the effects of market volatilities on Aqr Managed and Inverse Nasdaq 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 Inverse Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Inverse Nasdaq.
Diversification Opportunities for Aqr Managed and Inverse Nasdaq
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aqr and Inverse is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Inverse Nasdaq 100 Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse Nasdaq 100 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 Inverse Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse Nasdaq 100 has no effect on the direction of Aqr Managed i.e., Aqr Managed and Inverse Nasdaq go up and down completely randomly.
Pair Corralation between Aqr Managed and Inverse Nasdaq
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 0.78 times more return on investment than Inverse Nasdaq. However, Aqr Managed Futures is 1.28 times less risky than Inverse Nasdaq. It trades about 0.02 of its potential returns per unit of risk. Inverse Nasdaq 100 Strategy is currently generating about -0.07 per unit of risk. If you would invest 753.00 in Aqr Managed Futures on September 3, 2024 and sell it today you would earn a total of 68.00 from holding Aqr Managed Futures or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Inverse Nasdaq 100 Strategy
Performance |
| Timeline |
| Aqr Managed Futures |
| Inverse Nasdaq 100 |
Aqr Managed and Inverse Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Inverse Nasdaq
The main advantage of trading using opposite Aqr Managed and Inverse Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Inverse Nasdaq 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 Inverse Nasdaq will offset losses from the drop in Inverse Nasdaq's long position.| Aqr Managed vs. Siit Global Managed | Aqr Managed vs. Artisan Global Unconstrained | Aqr Managed vs. Barings Global Floating | Aqr Managed vs. Alliancebernstein Global High |
| Inverse Nasdaq vs. Columbia Real Estate | Inverse Nasdaq vs. Amg Managers Centersquare | Inverse Nasdaq vs. Commonwealth Real Estate | Inverse Nasdaq vs. Forum Real Estate |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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