Correlation Between Aim Treasurers and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Aim Treasurers and Aim Investment 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 Treasurers and Aim Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aim Treasurers Series and Aim Investment Secs, you can compare the effects of market volatilities on Aim Treasurers and Aim Investment 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 Treasurers with a short position of Aim Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aim Treasurers and Aim Investment.
Diversification Opportunities for Aim Treasurers and Aim Investment
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Aim and Aim is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Aim Treasurers Series and Aim Investment Secs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Secs and Aim Treasurers 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 Treasurers Series are associated (or correlated) with Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Secs has no effect on the direction of Aim Treasurers i.e., Aim Treasurers and Aim Investment go up and down completely randomly.
Pair Corralation between Aim Treasurers and Aim Investment
Assuming the 90 days horizon Aim Treasurers Series is expected to generate 1.23 times more return on investment than Aim Investment. However, Aim Treasurers is 1.23 times more volatile than Aim Investment Secs. It trades about 0.14 of its potential returns per unit of risk. Aim Investment Secs is currently generating about 0.12 per unit of risk. If you would invest 97.00 in Aim Treasurers Series on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Aim Treasurers Series or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aim Treasurers Series vs. Aim Investment Secs
Performance |
| Timeline |
| Aim Treasurers Series |
| Aim Investment Secs |
Aim Treasurers and Aim Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aim Treasurers and Aim Investment
The main advantage of trading using opposite Aim Treasurers and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aim Treasurers position performs unexpectedly, Aim Investment 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 Investment will offset losses from the drop in Aim Investment's long position.| Aim Treasurers vs. Great West Goldman Sachs | Aim Treasurers vs. Oppenheimer Gold Special | Aim Treasurers vs. Precious Metals And | Aim Treasurers vs. Goldman Sachs Short |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
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| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |