Correlation Between Aqr Managed and Nuveen Small
Can any of the company-specific risk be diversified away by investing in both Aqr Managed and Nuveen Small 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 Nuveen Small 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 Nuveen Small Cap, you can compare the effects of market volatilities on Aqr Managed and Nuveen Small 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 Nuveen Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Managed and Nuveen Small.
Diversification Opportunities for Aqr Managed and Nuveen Small
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AQR and NUVEEN is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Managed Futures and Nuveen Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Small Cap 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 Nuveen Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Small Cap has no effect on the direction of Aqr Managed i.e., Aqr Managed and Nuveen Small go up and down completely randomly.
Pair Corralation between Aqr Managed and Nuveen Small
Assuming the 90 days horizon Aqr Managed Futures is expected to generate 0.81 times more return on investment than Nuveen Small. However, Aqr Managed Futures is 1.24 times less risky than Nuveen Small. It trades about 0.23 of its potential returns per unit of risk. Nuveen Small Cap is currently generating about -0.3 per unit of risk. If you would invest 842.00 in Aqr Managed Futures on December 2, 2024 and sell it today you would earn a total of 41.00 from holding Aqr Managed Futures or generate 4.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aqr Managed Futures vs. Nuveen Small Cap
Performance |
Timeline |
Aqr Managed Futures |
Nuveen Small Cap |
Aqr Managed and Nuveen Small Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aqr Managed and Nuveen Small
The main advantage of trading using opposite Aqr Managed and Nuveen Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Managed position performs unexpectedly, Nuveen Small 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 Nuveen Small will offset losses from the drop in Nuveen Small's long position.Aqr Managed vs. Asg Managed Futures | Aqr Managed vs. Nationwide Inflation Protected Securities | Aqr Managed vs. Ab Bond Inflation | Aqr Managed vs. Western Asset Inflation |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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