Correlation Between Aam Select and Aim International
Can any of the company-specific risk be diversified away by investing in both Aam Select and Aim International 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 Aam Select and Aim International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aam Select Income and Aim International Mutual, you can compare the effects of market volatilities on Aam Select and Aim International 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 Aam Select with a short position of Aim International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam Select and Aim International.
Diversification Opportunities for Aam Select and Aim International
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aam and Aim is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Aam Select Income and Aim International Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim International Mutual and Aam Select 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 Aam Select Income are associated (or correlated) with Aim International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim International Mutual has no effect on the direction of Aam Select i.e., Aam Select and Aim International go up and down completely randomly.
Pair Corralation between Aam Select and Aim International
If you would invest 926.00 in Aam Select Income on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Aam Select Income or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aam Select Income vs. Aim International Mutual
Performance |
| Timeline |
| Aam Select Income |
| Aim International Mutual |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aam Select and Aim International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aam Select and Aim International
The main advantage of trading using opposite Aam Select and Aim International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam Select position performs unexpectedly, Aim International 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 Aim International will offset losses from the drop in Aim International's long position.| Aam Select vs. Guggenheim Diversified Income | Aam Select vs. Federated Hermes Conservative | Aam Select vs. Global Diversified Income | Aam Select vs. Jpmorgan Diversified Fund |
| Aim International vs. T Rowe Price | Aim International vs. Abr 7525 Volatility | Aim International vs. Aam Select Income | Aim International vs. Rbb Fund |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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