Correlation Between Aqr Managed and Aqr Tm
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Aqr Tm 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 Aqr Tm 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 Aqr Tm Emerging, you can compare the effects of market volatilities on Aqr Managed and Aqr Tm 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 Aqr Tm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Aqr Tm.
Diversification Opportunities for Aqr Managed and Aqr Tm
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aqr and Aqr is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Aqr Tm Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Tm Emerging 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 Aqr Tm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Tm Emerging has no effect on the direction of Aqr Managed i.e., Aqr Managed and Aqr Tm go up and down completely randomly.
Pair Corralation between Aqr Managed and Aqr Tm
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 0.94 times more return on investment than Aqr Tm. However, Aqr Managed Futures is 1.06 times less risky than Aqr Tm. It trades about 0.15 of its potential returns per unit of risk. Aqr Tm Emerging is currently generating about 0.13 per unit of risk. If you would invest 909.00 in Aqr Managed Futures on September 7, 2025 and sell it today you would earn a total of 75.00 from holding Aqr Managed Futures or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Managed Futures vs. Aqr Tm Emerging
Performance |
| Timeline |
| Aqr Managed Futures |
| Aqr Tm Emerging |
Aqr Managed and Aqr Tm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Managed and Aqr Tm
The main advantage of trading using opposite Aqr Managed and Aqr Tm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Aqr Tm 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 Tm will offset losses from the drop in Aqr Tm's long position.| Aqr Managed vs. Gmo Global Equity | Aqr Managed vs. The Hartford Global | Aqr Managed vs. Franklin Mutual Global | Aqr Managed vs. Templeton Global Balanced |
| Aqr Tm vs. Aqr Large Cap | Aqr Tm vs. Aqr Large Cap | Aqr Tm vs. Aqr International Defensive | Aqr Tm vs. Aqr International Defensive |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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