Correlation Between AIM Energy and One Step
Can any of the company-specific risk be diversified away by investing in both AIM Energy and One Step 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 AIM Energy and One Step into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM Energy and One Step Vending, you can compare the effects of market volatilities on AIM Energy and One Step 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 AIM Energy with a short position of One Step. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM Energy and One Step.
Diversification Opportunities for AIM Energy and One Step
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AIM and One is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AIM Energy and One Step Vending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Step Vending and AIM Energy 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 AIM Energy are associated (or correlated) with One Step. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Step Vending has no effect on the direction of AIM Energy i.e., AIM Energy and One Step go up and down completely randomly.
Pair Corralation between AIM Energy and One Step
If you would invest 1.70 in One Step Vending on September 4, 2024 and sell it today you would lose (1.34) from holding One Step Vending or give up 78.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM Energy vs. One Step Vending
Performance |
| Timeline |
| AIM Energy |
| One Step Vending |
AIM Energy and One Step Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM Energy and One Step
The main advantage of trading using opposite AIM Energy and One Step positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM Energy position performs unexpectedly, One Step 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 One Step will offset losses from the drop in One Step's long position.| AIM Energy vs. Morien Resources Corp | AIM Energy vs. Adaro Energy Tbk | AIM Energy vs. Alliance Resource Partners | AIM Energy vs. Brera Holdings PLC |
| One Step vs. Patterson Companies | One Step vs. Supernova Energy | One Step vs. AIM Energy | One Step vs. Movie Studio |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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