Correlation Between Aqr Managed and Siit Global
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Siit Global 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 Siit Global 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 Siit Global Managed, you can compare the effects of market volatilities on Aqr Managed and Siit Global 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 Siit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Siit Global.
Diversification Opportunities for Aqr Managed and Siit Global
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aqr and Siit is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Siit Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Global Managed 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 Siit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Global Managed has no effect on the direction of Aqr Managed i.e., Aqr Managed and Siit Global go up and down completely randomly.
Pair Corralation between Aqr Managed and Siit Global
Assuming the 90 days horizon Aqr Managed is expected to generate 1.48 times less return on investment than Siit Global. In addition to that, Aqr Managed is 1.69 times more volatile than Siit Global Managed. It trades about 0.03 of its total potential returns per unit of risk. Siit Global Managed is currently generating about 0.07 per unit of volatility. If you would invest 1,088 in Siit Global Managed on September 4, 2024 and sell it today you would earn a total of 205.00 from holding Siit Global Managed or generate 18.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Aqr Managed Futures vs. Siit Global Managed
Performance |
| Timeline |
| Aqr Managed Futures |
| Siit Global Managed |
Aqr Managed and Siit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Siit Global
The main advantage of trading using opposite Aqr Managed and Siit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Siit Global 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 Siit Global will offset losses from the drop in Siit Global's long position.| Aqr Managed vs. Gamco Natural Resources | Aqr Managed vs. Dreyfus Natural Resources | Aqr Managed vs. Gmo Resources | Aqr Managed vs. Goehring Rozencwajg Resources |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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