Correlation Between Series Portfolios and AIM ETF
Can any of the company-specific risk be diversified away by investing in both Series Portfolios and AIM ETF 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 Series Portfolios and AIM ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Series Portfolios Trust and AIM ETF Products, you can compare the effects of market volatilities on Series Portfolios and AIM ETF 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 Series Portfolios with a short position of AIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Series Portfolios and AIM ETF.
Diversification Opportunities for Series Portfolios and AIM ETF
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Series and AIM is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Series Portfolios Trust and AIM ETF Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ETF Products and Series Portfolios 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 Series Portfolios Trust are associated (or correlated) with AIM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM ETF Products has no effect on the direction of Series Portfolios i.e., Series Portfolios and AIM ETF go up and down completely randomly.
Pair Corralation between Series Portfolios and AIM ETF
Given the investment horizon of 90 days Series Portfolios Trust is expected to generate 3.25 times more return on investment than AIM ETF. However, Series Portfolios is 3.25 times more volatile than AIM ETF Products. It trades about 0.07 of its potential returns per unit of risk. AIM ETF Products is currently generating about 0.12 per unit of risk. If you would invest 2,501 in Series Portfolios Trust on September 13, 2024 and sell it today you would earn a total of 1,139 from holding Series Portfolios Trust or generate 45.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Series Portfolios Trust vs. AIM ETF Products
Performance |
| Timeline |
| Series Portfolios Trust |
| AIM ETF Products |
Series Portfolios and AIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Series Portfolios and AIM ETF
The main advantage of trading using opposite Series Portfolios and AIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Series Portfolios position performs unexpectedly, AIM ETF 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 ETF will offset losses from the drop in AIM ETF's long position.| Series Portfolios vs. Tidal ETF Trust | Series Portfolios vs. Fairlead Tactical Sector | Series Portfolios vs. Dimensional ETF Trust | Series Portfolios vs. KPOP and Korean |
| AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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