Correlation Between Aqr Managed and Inflation Linked
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Inflation Linked 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 Aqr Managed and Inflation Linked into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Managed Futures and Inflation Linked Fixed Income, you can compare the effects of market volatilities on Aqr Managed and Inflation Linked 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 Aqr Managed with a short position of Inflation Linked. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Inflation Linked.
Diversification Opportunities for Aqr Managed and Inflation Linked
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aqr and Inflation is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Inflation Linked Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Linked Fixed and Aqr Managed 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 Aqr Managed Futures are associated (or correlated) with Inflation Linked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Linked Fixed has no effect on the direction of Aqr Managed i.e., Aqr Managed and Inflation Linked go up and down completely randomly.
Pair Corralation between Aqr Managed and Inflation Linked
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 3.2 times more return on investment than Inflation Linked. However, Aqr Managed is 3.2 times more volatile than Inflation Linked Fixed Income. It trades about 0.14 of its potential returns per unit of risk. Inflation Linked Fixed Income is currently generating about -0.2 per unit of risk. If you would invest 973.00 in Aqr Managed Futures on October 5, 2025 and sell it today you would earn a total of 23.00 from holding Aqr Managed Futures or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Inflation Linked Fixed Income
Performance |
| Timeline |
| Aqr Managed Futures |
| Inflation Linked Fixed |
Aqr Managed and Inflation Linked Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Inflation Linked
The main advantage of trading using opposite Aqr Managed and Inflation Linked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Inflation Linked 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 Inflation Linked will offset losses from the drop in Inflation Linked's long position.| Aqr Managed vs. Janus Global Technology | Aqr Managed vs. Dreyfus Technology Growth | Aqr Managed vs. Science Technology Fund | Aqr Managed vs. Columbia Global Technology |
| Inflation Linked vs. Franklin Federal Limited Term | Inflation Linked vs. Angel Oak Ultrashort | Inflation Linked vs. Easterly Snow Longshort | Inflation Linked vs. Longshort Portfolio Longshort |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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