Correlation Between Simt Multi-asset and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset 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 Simt Multi-asset and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Inflation and Aqr Managed Futures, you can compare the effects of market volatilities on Simt Multi-asset 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 Simt Multi-asset with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Aqr Managed.
Diversification Opportunities for Simt Multi-asset and Aqr Managed
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Simt and Aqr is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation 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 Simt Multi-asset 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 Simt Multi Asset Inflation 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 Simt Multi-asset i.e., Simt Multi-asset and Aqr Managed go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Aqr Managed
Assuming the 90 days horizon Simt Multi Asset Inflation is expected to generate 0.18 times more return on investment than Aqr Managed. However, Simt Multi Asset Inflation is 5.44 times less risky than Aqr Managed. It trades about 0.52 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about -0.01 per unit of risk. If you would invest 768.00 in Simt Multi Asset Inflation on November 4, 2024 and sell it today you would earn a total of 15.00 from holding Simt Multi Asset Inflation or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Inflation vs. Aqr Managed Futures
Performance |
| Timeline |
| Simt Multi Asset |
| Aqr Managed Futures |
Simt Multi-asset and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Aqr Managed
The main advantage of trading using opposite Simt Multi-asset and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset 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.| Simt Multi-asset vs. Calvert Developed Market | Simt Multi-asset vs. Aqr Sustainable Long Short | Simt Multi-asset vs. Aqr Equity Market | Simt Multi-asset vs. Mid Cap 15x Strategy |
| Aqr Managed vs. Nasdaq 100 2x Strategy | Aqr Managed vs. Federated Emerging Market | Aqr Managed vs. Barings Emerging Markets | Aqr Managed vs. Siit Emerging Markets |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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