Correlation Between AIM Industrial and Ally Leasehold
Can any of the company-specific risk be diversified away by investing in both AIM Industrial and Ally Leasehold 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 Industrial and Ally Leasehold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM Industrial Growth and Ally Leasehold Real, you can compare the effects of market volatilities on AIM Industrial and Ally Leasehold 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 Industrial with a short position of Ally Leasehold. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM Industrial and Ally Leasehold.
Diversification Opportunities for AIM Industrial and Ally Leasehold
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AIM and Ally is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding AIM Industrial Growth and Ally Leasehold Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ally Leasehold Real and AIM Industrial 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 Industrial Growth are associated (or correlated) with Ally Leasehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ally Leasehold Real has no effect on the direction of AIM Industrial i.e., AIM Industrial and Ally Leasehold go up and down completely randomly.
Pair Corralation between AIM Industrial and Ally Leasehold
Assuming the 90 days trading horizon AIM Industrial Growth is expected to generate 0.71 times more return on investment than Ally Leasehold. However, AIM Industrial Growth is 1.41 times less risky than Ally Leasehold. It trades about 0.01 of its potential returns per unit of risk. Ally Leasehold Real is currently generating about -0.01 per unit of risk. If you would invest 1,024 in AIM Industrial Growth on September 2, 2024 and sell it today you would earn a total of 26.00 from holding AIM Industrial Growth or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM Industrial Growth vs. Ally Leasehold Real
Performance |
| Timeline |
| AIM Industrial Growth |
| Ally Leasehold Real |
AIM Industrial and Ally Leasehold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM Industrial and Ally Leasehold
The main advantage of trading using opposite AIM Industrial and Ally Leasehold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM Industrial position performs unexpectedly, Ally Leasehold 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 Ally Leasehold will offset losses from the drop in Ally Leasehold's long position.| AIM Industrial vs. Amata Summit Growth | AIM Industrial vs. WHA Premium Growth | AIM Industrial vs. Digital Telecommunications Infrastructure | AIM Industrial vs. Quality Houses Property |
| Ally Leasehold vs. AIM Industrial Growth | Ally Leasehold vs. Dusit Thani Freehold | Ally Leasehold vs. CPN Retail Growth | Ally Leasehold vs. Amata Summit Growth |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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