Correlation Between Aqr Managed and Ocm Mutual

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

Diversification Opportunities for Aqr Managed and Ocm Mutual

-0.83

Correlation Coefficient

Aqr Managed  Ocm Mutual

Pay attention - limited upside

The 3 months correlation between Aqr and Ocm is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Ocm Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocm Mutual Fund 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 Ocm Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocm Mutual Fund has no effect on the direction of Aqr Managed i.e., Aqr Managed and Ocm Mutual go up and down completely randomly.

Pair Corralation between Aqr Managed and Ocm Mutual

Assuming the 90 days horizon Aqr Managed Futures is expected to under-perform the Ocm Mutual. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aqr Managed Futures is 3.01 times less risky than Ocm Mutual. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Ocm Mutual Fund is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,088  in Ocm Mutual Fund on October 12, 2024 and sell it today you would earn a total of  129.00  from holding Ocm Mutual Fund or generate 11.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Aqr Managed Futures  vs.  Ocm Mutual Fund

Aqr Managed Futures

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aqr Managed Futures are ranked lower than 13 (%) 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.

Ocm Mutual Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ocm Mutual Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Aqr Managed and Ocm Mutual

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

The idea behind Aqr Managed Futures and Ocm Mutual Fund 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.