Correlation Between Simt Multi and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Simt Multi 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 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 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 with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi and Aqr Managed.
Diversification Opportunities for Simt Multi and Aqr Managed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simt and Aqr is 0.0. 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 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 i.e., Simt Multi and Aqr Managed go up and down completely randomly.
Pair Corralation between Simt Multi and Aqr Managed
Assuming the 90 days horizon Simt Multi is expected to generate 1.91 times less return on investment than Aqr Managed. But when comparing it to its historical volatility, Simt Multi Asset Inflation is 3.63 times less risky than Aqr Managed. It trades about 0.07 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 755.00 in Aqr Managed Futures on September 12, 2024 and sell it today you would earn a total of 82.00 from holding Aqr Managed Futures or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| 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 and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi and Aqr Managed
The main advantage of trading using opposite Simt Multi and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi 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 vs. Capital Income Builder | Simt Multi vs. Capital Income Builder | Simt Multi vs. Capital Income Builder | Simt Multi vs. Capital Income Builder |
| Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. Pimco Trends Managed | Aqr Managed vs. SCOR PK | Aqr Managed vs. Morningstar Unconstrained Allocation |
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 Stocks Directory module to find actively traded stocks across global markets.
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