Correlation Between Aim Investment and Aim International
Can any of the company-specific risk be diversified away by investing in both Aim Investment 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 Aim Investment and Aim International 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 Aim International Mutual, you can compare the effects of market volatilities on Aim Investment 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 Aim Investment with a short position of Aim International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aim Investment and Aim International.
Diversification Opportunities for Aim Investment and Aim International
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aim and Aim is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Aim Investment Secs 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 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 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 Aim Investment i.e., Aim Investment and Aim International go up and down completely randomly.
Pair Corralation between Aim Investment and Aim International
If you would invest 2,246 in Aim International Mutual on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Aim International Mutual or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aim Investment Secs vs. Aim International Mutual
Performance |
| Timeline |
| Aim Investment Secs |
| Aim International Mutual |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aim Investment and Aim International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aim Investment and Aim International
The main advantage of trading using opposite Aim Investment and Aim International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aim Investment 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.| Aim Investment vs. Goldman Sachs Emerging | Aim Investment vs. Western Asset Diversified | Aim Investment vs. Calvert Developed Market | Aim Investment vs. Origin Emerging Markets |
| Aim International vs. Financials Ultrasector Profund | Aim International vs. Vanguard Financials Index | Aim International vs. Gabelli Global Financial | Aim International vs. Goldman Sachs Financial |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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