Correlation Between Multimanager Lifestyle and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Multimanager Lifestyle 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 Multimanager Lifestyle and Aim Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multimanager Lifestyle Aggressive and Aim Investment Secs, you can compare the effects of market volatilities on Multimanager Lifestyle 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 Multimanager Lifestyle with a short position of Aim Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multimanager Lifestyle and Aim Investment.
Diversification Opportunities for Multimanager Lifestyle and Aim Investment
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Multimanager and Aim is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Multimanager Lifestyle Aggress 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 Multimanager Lifestyle 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 Multimanager Lifestyle Aggressive 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 Multimanager Lifestyle i.e., Multimanager Lifestyle and Aim Investment go up and down completely randomly.
Pair Corralation between Multimanager Lifestyle and Aim Investment
If you would invest 1,472 in Multimanager Lifestyle Aggressive on September 1, 2024 and sell it today you would earn a total of 66.00 from holding Multimanager Lifestyle Aggressive or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Multimanager Lifestyle Aggress vs. Aim Investment Secs
Performance |
| Timeline |
| Multimanager Lifestyle |
| Aim Investment Secs |
Multimanager Lifestyle and Aim Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multimanager Lifestyle and Aim Investment
The main advantage of trading using opposite Multimanager Lifestyle and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multimanager Lifestyle 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.| Multimanager Lifestyle vs. Thrivent Income Fund | Multimanager Lifestyle vs. Touchstone Premium Yield | Multimanager Lifestyle vs. Inflation Protected Bond Fund | Multimanager Lifestyle vs. Blrc Sgy Mnp |
| Aim Investment vs. Cref Money Market | Aim Investment vs. Franklin Government Money | Aim Investment vs. T Rowe Price | Aim Investment vs. Jpmorgan Trust I |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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