Correlation Between Ssga International and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Ssga International 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 Ssga International and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssga International Stock and Aqr Managed Futures, you can compare the effects of market volatilities on Ssga International 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 Ssga International with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssga International and Aqr Managed.
Diversification Opportunities for Ssga International and Aqr Managed
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ssga and AQR is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ssga International Stock 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 Ssga International 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 Ssga International Stock 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 Ssga International i.e., Ssga International and Aqr Managed go up and down completely randomly.
Pair Corralation between Ssga International and Aqr Managed
Assuming the 90 days horizon Ssga International Stock is expected to generate 1.46 times more return on investment than Aqr Managed. However, Ssga International is 1.46 times more volatile than Aqr Managed Futures. It trades about 0.01 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about -0.05 per unit of risk. If you would invest 1,145 in Ssga International Stock on September 5, 2024 and sell it today you would earn a total of 9.00 from holding Ssga International Stock or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Ssga International Stock vs. Aqr Managed Futures
Performance |
| Timeline |
| Ssga International Stock |
| Aqr Managed Futures |
Ssga International and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssga International and Aqr Managed
The main advantage of trading using opposite Ssga International and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssga International 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.| Ssga International vs. Aqr Managed Futures | Ssga International vs. Inflation Protected Bond Fund | Ssga International vs. Aqr Managed Futures | Ssga International vs. Ab Bond Inflation |
| Aqr Managed vs. Maryland Tax Free Bond | Aqr Managed vs. The National Tax Free | Aqr Managed vs. Ab Bond Inflation | Aqr Managed vs. T Rowe Price |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |