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 Funds 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
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aim and Aim is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Aim Investment Funds 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 Funds 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
Assuming the 90 days horizon Aim Investment Funds is expected to generate 0.54 times more return on investment than Aim International. However, Aim Investment Funds is 1.85 times less risky than Aim International. It trades about 0.05 of its potential returns per unit of risk. Aim International Mutual is currently generating about 0.0 per unit of risk. If you would invest 394.00 in Aim Investment Funds on November 9, 2024 and sell it today you would earn a total of 49.00 from holding Aim Investment Funds or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Aim Investment Funds vs. Aim International Mutual
Performance |
| Timeline |
| Aim Investment Funds |
| Aim International Mutual |
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. Artisan High Income | Aim Investment vs. Rbc Bluebay Global | Aim Investment vs. Chartwell Short Duration | Aim Investment vs. Intal High Relative |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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