Correlation Between AIM ETF and Innovator ETFs
Can any of the company-specific risk be diversified away by investing in both AIM ETF and Innovator ETFs 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 ETF and Innovator ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ETF Products and Innovator ETFs Trust, you can compare the effects of market volatilities on AIM ETF and Innovator ETFs 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 ETF with a short position of Innovator ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Innovator ETFs.
Diversification Opportunities for AIM ETF and Innovator ETFs
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between AIM and Innovator is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Innovator ETFs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator ETFs Trust and AIM ETF 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 ETF Products are associated (or correlated) with Innovator ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator ETFs Trust has no effect on the direction of AIM ETF i.e., AIM ETF and Innovator ETFs go up and down completely randomly.
Pair Corralation between AIM ETF and Innovator ETFs
Given the investment horizon of 90 days AIM ETF Products is expected to generate 0.12 times more return on investment than Innovator ETFs. However, AIM ETF Products is 8.25 times less risky than Innovator ETFs. It trades about 0.29 of its potential returns per unit of risk. Innovator ETFs Trust is currently generating about -0.05 per unit of risk. If you would invest 3,048 in AIM ETF Products on September 3, 2024 and sell it today you would earn a total of 12.00 from holding AIM ETF Products or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ETF Products vs. Innovator ETFs Trust
Performance |
| Timeline |
| AIM ETF Products |
| Innovator ETFs Trust |
AIM ETF and Innovator ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and Innovator ETFs
The main advantage of trading using opposite AIM ETF and Innovator ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, Innovator ETFs 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 Innovator ETFs will offset losses from the drop in Innovator ETFs' long position.| AIM ETF vs. Innovator ETFs Trust | AIM ETF vs. First Trust Cboe | AIM ETF vs. FT Cboe Vest | AIM ETF vs. Innovator SP 500 |
| Innovator ETFs vs. ProShares Ultra MSCI | Innovator ETFs vs. ProShares UltraShort MSCI | Innovator ETFs vs. SWP Growth Income | Innovator ETFs vs. Invesco DB Dollar |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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