Correlation Between Aimia and BLUERUSH Media
Can any of the company-specific risk be diversified away by investing in both Aimia and BLUERUSH Media 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 Aimia and BLUERUSH Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aimia Inc and BLUERUSH Media Group, you can compare the effects of market volatilities on Aimia and BLUERUSH Media 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 Aimia with a short position of BLUERUSH Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aimia and BLUERUSH Media.
Diversification Opportunities for Aimia and BLUERUSH Media
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aimia and BLUERUSH is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Aimia Inc and BLUERUSH Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLUERUSH Media Group and Aimia 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 Aimia Inc are associated (or correlated) with BLUERUSH Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLUERUSH Media Group has no effect on the direction of Aimia i.e., Aimia and BLUERUSH Media go up and down completely randomly.
Pair Corralation between Aimia and BLUERUSH Media
Assuming the 90 days trading horizon Aimia Inc is expected to under-perform the BLUERUSH Media. But the stock apears to be less risky and, when comparing its historical volatility, Aimia Inc is 6.78 times less risky than BLUERUSH Media. The stock trades about -0.03 of its potential returns per unit of risk. The BLUERUSH Media Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 14.00 in BLUERUSH Media Group on August 27, 2024 and sell it today you would lose (13.00) from holding BLUERUSH Media Group or give up 92.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aimia Inc vs. BLUERUSH Media Group
Performance |
| Timeline |
| Aimia Inc |
| BLUERUSH Media Group |
Aimia and BLUERUSH Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aimia and BLUERUSH Media
The main advantage of trading using opposite Aimia and BLUERUSH Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aimia position performs unexpectedly, BLUERUSH Media 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 BLUERUSH Media will offset losses from the drop in BLUERUSH Media's long position.| Aimia vs. Autocanada | Aimia vs. Corus Entertainment | Aimia vs. Element Fleet Management | Aimia vs. Dorel Industries |
| BLUERUSH Media vs. Slate Grocery REIT | BLUERUSH Media vs. Roots Corp | BLUERUSH Media vs. Aimia Inc | BLUERUSH Media vs. Tucows Inc |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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