Correlation Between Allianzgi Convertible and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Aqr Managed 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 Allianzgi Convertible and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Convertible Income and Aqr Managed Futures, you can compare the effects of market volatilities on Allianzgi Convertible and Aqr Managed 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 Allianzgi Convertible with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Aqr Managed.
Diversification Opportunities for Allianzgi Convertible and Aqr Managed
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and Aqr is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Aqr Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Managed Futures and Allianzgi Convertible 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 Allianzgi Convertible Income are associated (or correlated) with Aqr Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Managed Futures has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Aqr Managed go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Aqr Managed
Assuming the 90 days horizon Allianzgi Convertible Income is expected to under-perform the Aqr Managed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Allianzgi Convertible Income is 1.0 times less risky than Aqr Managed. The mutual fund trades about -0.32 of its potential returns per unit of risk. The Aqr Managed Futures is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 841.00 in Aqr Managed Futures on October 9, 2024 and sell it today you would lose (1.00) from holding Aqr Managed Futures or give up 0.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Allianzgi Convertible Income vs. Aqr Managed Futures
Performance |
Timeline |
Allianzgi Convertible |
Aqr Managed Futures |
Allianzgi Convertible and Aqr Managed Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allianzgi Convertible and Aqr Managed
The main advantage of trading using opposite Allianzgi Convertible and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Aqr Managed 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 Managed will offset losses from the drop in Aqr Managed's long position.Allianzgi Convertible vs. Wells Fargo Diversified | Allianzgi Convertible vs. Stone Ridge Diversified | Allianzgi Convertible vs. Tax Managed Mid Small | Allianzgi Convertible vs. Tiaa Cref Small Cap Equity |
Aqr Managed vs. Rbc Global Equity | Aqr Managed vs. Us Global Investors | Aqr Managed vs. Morgan Stanley Global | Aqr Managed vs. Ab Global Bond |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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