Correlation Between 1290 Retirement and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both 1290 Retirement 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 1290 Retirement and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1290 Retirement 2045 and Aqr Managed Futures, you can compare the effects of market volatilities on 1290 Retirement 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 1290 Retirement with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1290 Retirement and Aqr Managed.
Diversification Opportunities for 1290 Retirement and Aqr Managed
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 1290 and Aqr is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding 1290 Retirement 2045 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 1290 Retirement 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 1290 Retirement 2045 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 1290 Retirement i.e., 1290 Retirement and Aqr Managed go up and down completely randomly.
Pair Corralation between 1290 Retirement and Aqr Managed
Assuming the 90 days horizon 1290 Retirement is expected to generate 1.08 times less return on investment than Aqr Managed. But when comparing it to its historical volatility, 1290 Retirement 2045 is 1.33 times less risky than Aqr Managed. It trades about 0.11 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 848.00 in Aqr Managed Futures on September 12, 2024 and sell it today you would earn a total of 26.00 from holding Aqr Managed Futures or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
1290 Retirement 2045 vs. Aqr Managed Futures
Performance |
| Timeline |
| 1290 Retirement 2045 |
| Aqr Managed Futures |
1290 Retirement and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1290 Retirement and Aqr Managed
The main advantage of trading using opposite 1290 Retirement and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1290 Retirement 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.| 1290 Retirement vs. Pace Municipal Fixed | 1290 Retirement vs. Nuveen Minnesota Municipal | 1290 Retirement vs. Gamco Global Telecommunications | 1290 Retirement vs. Franklin High Yield |
| Aqr Managed vs. Davis Financial Fund | Aqr Managed vs. Angel Oak Financial | Aqr Managed vs. Icon Financial Fund | Aqr Managed vs. Goldman Sachs Financial |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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