Correlation Between Aim Investment and Matson Money
Can any of the company-specific risk be diversified away by investing in both Aim Investment and Matson Money 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 Investment and Matson Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aim Investment Secs and Matson Money Fixed, you can compare the effects of market volatilities on Aim Investment and Matson Money 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 Investment with a short position of Matson Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aim Investment and Matson Money.
Diversification Opportunities for Aim Investment and Matson Money
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aim and MATSON is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Aim Investment Secs and Matson Money Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matson Money Fixed and Aim Investment 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 Investment Secs are associated (or correlated) with Matson Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matson Money Fixed has no effect on the direction of Aim Investment i.e., Aim Investment and Matson Money go up and down completely randomly.
Pair Corralation between Aim Investment and Matson Money
Assuming the 90 days horizon Aim Investment Secs is expected to generate 1.38 times more return on investment than Matson Money. However, Aim Investment is 1.38 times more volatile than Matson Money Fixed. It trades about 0.15 of its potential returns per unit of risk. Matson Money Fixed is currently generating about -0.06 per unit of risk. If you would invest 99.00 in Aim Investment Secs on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Aim Investment Secs or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Aim Investment Secs vs. Matson Money Fixed
Performance |
| Timeline |
| Aim Investment Secs |
| Matson Money Fixed |
Aim Investment and Matson Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aim Investment and Matson Money
The main advantage of trading using opposite Aim Investment and Matson Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aim Investment position performs unexpectedly, Matson Money 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 Matson Money will offset losses from the drop in Matson Money's long position.| Aim Investment vs. Franklin Adjustable Government | Aim Investment vs. Aig Government Money | Aim Investment vs. Us Government Securities | Aim Investment vs. Us Government Plus |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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