Correlation Between Azimut Holding and Aimia
Can any of the company-specific risk be diversified away by investing in both Azimut Holding and Aimia 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 Azimut Holding and Aimia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azimut Holding SpA and Aimia Inc, you can compare the effects of market volatilities on Azimut Holding and Aimia 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 Azimut Holding with a short position of Aimia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azimut Holding and Aimia.
Diversification Opportunities for Azimut Holding and Aimia
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Azimut and Aimia is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Azimut Holding SpA and Aimia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aimia Inc and Azimut Holding 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 Azimut Holding SpA are associated (or correlated) with Aimia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aimia Inc has no effect on the direction of Azimut Holding i.e., Azimut Holding and Aimia go up and down completely randomly.
Pair Corralation between Azimut Holding and Aimia
If you would invest 4,448 in Azimut Holding SpA on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Azimut Holding SpA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Azimut Holding SpA vs. Aimia Inc
Performance |
| Timeline |
| Azimut Holding SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aimia Inc |
Azimut Holding and Aimia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azimut Holding and Aimia
The main advantage of trading using opposite Azimut Holding and Aimia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azimut Holding position performs unexpectedly, Aimia 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 Aimia will offset losses from the drop in Aimia's long position.| Azimut Holding vs. Ameritrans Capital Corp | Azimut Holding vs. Bounce Mobile Systems | Azimut Holding vs. Elysee Development Corp | Azimut Holding vs. AGF Management Limited |
| Aimia vs. Flow Capital Corp | Aimia vs. Ameritrans Capital Corp | Aimia vs. Blackhawk Growth Corp | Aimia vs. Azimut Holding SpA |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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