Correlation Between AmerisourceBergen and AIM Energy
Can any of the company-specific risk be diversified away by investing in both AmerisourceBergen and AIM Energy 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 AmerisourceBergen and AIM Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmerisourceBergen and AIM Energy, you can compare the effects of market volatilities on AmerisourceBergen and AIM Energy 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 AmerisourceBergen with a short position of AIM Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmerisourceBergen and AIM Energy.
Diversification Opportunities for AmerisourceBergen and AIM Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AmerisourceBergen and AIM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AmerisourceBergen and AIM Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM Energy and AmerisourceBergen 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 AmerisourceBergen are associated (or correlated) with AIM Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM Energy has no effect on the direction of AmerisourceBergen i.e., AmerisourceBergen and AIM Energy go up and down completely randomly.
Pair Corralation between AmerisourceBergen and AIM Energy
If you would invest 0.01 in AIM Energy on October 24, 2024 and sell it today you would earn a total of 0.00 from holding AIM Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.41% |
| Values | Daily Returns |
AmerisourceBergen vs. AIM Energy
Performance |
| Timeline |
| AmerisourceBergen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AIM Energy |
AmerisourceBergen and AIM Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmerisourceBergen and AIM Energy
The main advantage of trading using opposite AmerisourceBergen and AIM Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmerisourceBergen position performs unexpectedly, AIM Energy 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 AIM Energy will offset losses from the drop in AIM Energy's long position.| AmerisourceBergen vs. Cardinal Health | AmerisourceBergen vs. Henry Schein | AmerisourceBergen vs. Owens Minor | AmerisourceBergen vs. Patterson Companies |
| AIM Energy vs. Wavefront Technology Solutions | AIM Energy vs. Yangarra Resources | AIM Energy vs. Whitehaven Coal Limited | AIM Energy vs. Aquagold International |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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