Correlation Between Aimia and Quorum Information
Can any of the company-specific risk be diversified away by investing in both Aimia and Quorum Information 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 Quorum Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aimia Inc and Quorum Information Technologies, you can compare the effects of market volatilities on Aimia and Quorum Information 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 Quorum Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aimia and Quorum Information.
Diversification Opportunities for Aimia and Quorum Information
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aimia and Quorum is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Aimia Inc and Quorum Information Technologie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quorum Information 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 Quorum Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quorum Information has no effect on the direction of Aimia i.e., Aimia and Quorum Information go up and down completely randomly.
Pair Corralation between Aimia and Quorum Information
Assuming the 90 days trading horizon Aimia Inc is expected to under-perform the Quorum Information. But the stock apears to be less risky and, when comparing its historical volatility, Aimia Inc is 2.13 times less risky than Quorum Information. The stock trades about -0.1 of its potential returns per unit of risk. The Quorum Information Technologies is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 86.00 in Quorum Information Technologies on August 26, 2024 and sell it today you would lose (1.00) from holding Quorum Information Technologies or give up 1.16% 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. Quorum Information Technologie
Performance |
| Timeline |
| Aimia Inc |
| Quorum Information |
Aimia and Quorum Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aimia and Quorum Information
The main advantage of trading using opposite Aimia and Quorum Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aimia position performs unexpectedly, Quorum Information 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 Quorum Information will offset losses from the drop in Quorum Information's long position.| Aimia vs. Autocanada | Aimia vs. Corus Entertainment | Aimia vs. Element Fleet Management | Aimia vs. Dorel Industries |
| Quorum Information vs. Slate Grocery REIT | Quorum Information vs. Roots Corp | Quorum Information vs. Aimia Inc | Quorum Information 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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