Correlation Between Aqr Managed and Artisan Global

Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Artisan Global 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 Artisan Global 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 Artisan Global Value, you can compare the effects of market volatilities on Aqr Managed and Artisan Global 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 Artisan Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Artisan Global.

Diversification Opportunities for Aqr Managed and Artisan Global

0.69

Correlation Coefficient

Aqr Managed  Artisan Global

Poor diversification

The 3 months correlation between Aqr and Artisan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Artisan Global Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Global Value 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 Artisan Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Global Value has no effect on the direction of Aqr Managed i.e., Aqr Managed and Artisan Global go up and down completely randomly.

Pair Corralation between Aqr Managed and Artisan Global

Assuming the 90 days horizon Aqr Managed is expected to generate 1.91 times less return on investment than Artisan Global. But when comparing it to its historical volatility, Aqr Managed Futures is 1.21 times less risky than Artisan Global. It trades about 0.13 of its potential returns per unit of risk. Artisan Global Value is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  2,227  in Artisan Global Value on December 25, 2024 and sell it today you would earn a total of  214.00  from holding Artisan Global Value or generate 9.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.33%
Values	Daily Returns

Aqr Managed Futures  vs.  Artisan Global Value

Aqr Managed Futures

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aqr Managed Futures are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Aqr Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Artisan Global Value

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Global Value are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Artisan Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Aqr Managed and Artisan Global

The main advantage of trading using opposite Aqr Managed and Artisan Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Artisan Global 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 Artisan Global will offset losses from the drop in Artisan Global's long position.

The idea behind Aqr Managed Futures and Artisan Global Value pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.