Correlation Between Guggenheim Managed and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Aqr Managed 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 Guggenheim Managed and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Managed Futures and Aqr Managed Futures, you can compare the effects of market volatilities on Guggenheim Managed and Aqr Managed 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 Guggenheim Managed with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Aqr Managed.
Diversification Opportunities for Guggenheim Managed and Aqr Managed
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guggenheim and AQR is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Aqr Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Managed Futures and Guggenheim 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 Guggenheim Managed Futures are associated (or correlated) with Aqr Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Managed Futures has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Aqr Managed go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Aqr Managed
Assuming the 90 days horizon Guggenheim Managed is expected to generate 4.08 times less return on investment than Aqr Managed. In addition to that, Guggenheim Managed is 1.2 times more volatile than Aqr Managed Futures. It trades about 0.01 of its total potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.03 per unit of volatility. If you would invest 781.00 in Aqr Managed Futures on September 3, 2024 and sell it today you would earn a total of 76.00 from holding Aqr Managed Futures or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Managed Futures vs. Aqr Managed Futures
Performance |
| Timeline |
| Guggenheim Managed |
| Aqr Managed Futures |
Guggenheim Managed and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Aqr Managed
The main advantage of trading using opposite Guggenheim Managed and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Aqr Managed 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 Aqr Managed will offset losses from the drop in Aqr Managed's long position.| Guggenheim Managed vs. Aqr Managed Futures | Guggenheim Managed vs. Ab Bond Inflation | Guggenheim Managed vs. American Funds Inflation | Guggenheim Managed vs. Ab Bond Inflation |
| Aqr Managed vs. Arrow Managed Futures | Aqr Managed vs. Abr 7525 Volatility | Aqr Managed vs. Sei Daily Income | Aqr Managed vs. Volumetric Fund Volumetric |
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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