Correlation Between DSJA and AIM ETF
Can any of the company-specific risk be diversified away by investing in both DSJA and AIM ETF 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 DSJA and AIM ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSJA and AIM ETF Products, you can compare the effects of market volatilities on DSJA and AIM ETF 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 DSJA with a short position of AIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and AIM ETF.
Diversification Opportunities for DSJA and AIM ETF
Almost no diversification
The 3 months correlation between DSJA and AIM is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding DSJA and AIM ETF Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ETF Products and DSJA 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 DSJA are associated (or correlated) with AIM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM ETF Products has no effect on the direction of DSJA i.e., DSJA and AIM ETF go up and down completely randomly.
Pair Corralation between DSJA and AIM ETF
If you would invest 3,159 in AIM ETF Products on September 3, 2024 and sell it today you would earn a total of 101.00 from holding AIM ETF Products or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
DSJA vs. AIM ETF Products
Performance |
| Timeline |
| DSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AIM ETF Products |
DSJA and AIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSJA and AIM ETF
The main advantage of trading using opposite DSJA and AIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSJA position performs unexpectedly, AIM ETF 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 ETF will offset losses from the drop in AIM ETF's long position.| DSJA vs. FT Cboe Vest | DSJA vs. Aquagold International | DSJA vs. Morningstar Unconstrained Allocation | DSJA vs. High Yield Municipal Fund |
| AIM ETF vs. FT Vest Equity | AIM ETF vs. Northern Lights | AIM ETF vs. Dimensional International High | AIM ETF vs. JPMorgan Fundamental Data |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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