Correlation Between Siit Emerging and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Siit Emerging 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 Siit Emerging and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Aqr Managed Futures, you can compare the effects of market volatilities on Siit Emerging 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 Siit Emerging with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Aqr Managed.
Diversification Opportunities for Siit Emerging and Aqr Managed
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Aqr is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets 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 Siit Emerging 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 Siit Emerging Markets 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 Siit Emerging i.e., Siit Emerging and Aqr Managed go up and down completely randomly.
Pair Corralation between Siit Emerging and Aqr Managed
Assuming the 90 days horizon Siit Emerging Markets is expected to under-perform the Aqr Managed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Siit Emerging Markets is 2.6 times less risky than Aqr Managed. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Aqr Managed Futures is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 797.00 in Aqr Managed Futures on October 19, 2024 and sell it today you would earn a total of 53.00 from holding Aqr Managed Futures or generate 6.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Emerging Markets vs. Aqr Managed Futures
Performance |
| Timeline |
| Siit Emerging Markets |
| Aqr Managed Futures |
Siit Emerging and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Aqr Managed
The main advantage of trading using opposite Siit Emerging and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging 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.| Siit Emerging vs. Putnam Global Financials | Siit Emerging vs. Mesirow Financial Small | Siit Emerging vs. Vanguard Financials Index | Siit Emerging vs. Davis Financial Fund |
| Aqr Managed vs. Oshaughnessy Market Leaders | Aqr Managed vs. Aqr Sustainable Long Short | Aqr Managed vs. Siit Emerging Markets | Aqr Managed vs. Delaware Limited Term Diversified |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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