Correlation Between Aim Investment and Short-intermediate
Can any of the company-specific risk be diversified away by investing in both Aim Investment and Short-intermediate 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 Short-intermediate 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 Short Intermediate Bond Fund, you can compare the effects of market volatilities on Aim Investment and Short-intermediate 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 Short-intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aim Investment and Short-intermediate.
Diversification Opportunities for Aim Investment and Short-intermediate
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aim and Short-intermediate is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Aim Investment Secs and Short Intermediate Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Intermediate Bond 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 Short-intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Intermediate Bond has no effect on the direction of Aim Investment i.e., Aim Investment and Short-intermediate go up and down completely randomly.
Pair Corralation between Aim Investment and Short-intermediate
Assuming the 90 days horizon Aim Investment is expected to generate 1.45 times less return on investment than Short-intermediate. But when comparing it to its historical volatility, Aim Investment Secs is 1.29 times less risky than Short-intermediate. It trades about 0.12 of its potential returns per unit of risk. Short Intermediate Bond Fund is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 829.00 in Short Intermediate Bond Fund on August 27, 2024 and sell it today you would earn a total of 78.00 from holding Short Intermediate Bond Fund or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aim Investment Secs vs. Short Intermediate Bond Fund
Performance |
| Timeline |
| Aim Investment Secs |
| Short Intermediate Bond |
Aim Investment and Short-intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aim Investment and Short-intermediate
The main advantage of trading using opposite Aim Investment and Short-intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aim Investment position performs unexpectedly, Short-intermediate 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 Short-intermediate will offset losses from the drop in Short-intermediate's long position.| Aim Investment vs. Vanguard Short Term Government | Aim Investment vs. Inverse Government Long | Aim Investment vs. Fidelity Series Government | Aim Investment vs. Ab Government Exchange |
| Short-intermediate vs. Aim Investment Secs | Short-intermediate vs. Plan Investment | Short-intermediate vs. Pioneer Money Market | Short-intermediate vs. Massmutual Premier Funds |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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