Correlation Between AIM ETF and Stone Ridge
Can any of the company-specific risk be diversified away by investing in both AIM ETF and Stone Ridge 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 ETF and Stone Ridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ETF Products and Stone Ridge 2059, you can compare the effects of market volatilities on AIM ETF and Stone Ridge 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 ETF with a short position of Stone Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Stone Ridge.
Diversification Opportunities for AIM ETF and Stone Ridge
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIM and Stone is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Stone Ridge 2059 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Ridge 2059 and AIM ETF 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 ETF Products are associated (or correlated) with Stone Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Ridge 2059 has no effect on the direction of AIM ETF i.e., AIM ETF and Stone Ridge go up and down completely randomly.
Pair Corralation between AIM ETF and Stone Ridge
Given the investment horizon of 90 days AIM ETF is expected to generate 2.09 times less return on investment than Stone Ridge. But when comparing it to its historical volatility, AIM ETF Products is 1.04 times less risky than Stone Ridge. It trades about 0.19 of its potential returns per unit of risk. Stone Ridge 2059 is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 2,308 in Stone Ridge 2059 on November 9, 2024 and sell it today you would earn a total of 94.00 from holding Stone Ridge 2059 or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
AIM ETF Products vs. Stone Ridge 2059
Performance |
| Timeline |
| AIM ETF Products |
| Stone Ridge 2059 |
AIM ETF and Stone Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and Stone Ridge
The main advantage of trading using opposite AIM ETF and Stone Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, Stone Ridge 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 Stone Ridge will offset losses from the drop in Stone Ridge's long position.| AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products | AIM ETF vs. AllianzIM Large Cap | AIM ETF vs. AIM ETF Products |
| Stone Ridge vs. Vanguard Short Term Inflation Protected | Stone Ridge vs. iShares TIPS Bond | Stone Ridge vs. Invesco PureBeta 0 5 | Stone Ridge vs. Goldman Sachs Access |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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