Correlation Between AIM ETF and Allianzim Large
Can any of the company-specific risk be diversified away by investing in both AIM ETF and Allianzim Large 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 Allianzim Large 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 Allianzim Large Cap, you can compare the effects of market volatilities on AIM ETF and Allianzim Large 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 Allianzim Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Allianzim Large.
Diversification Opportunities for AIM ETF and Allianzim Large
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AIM and Allianzim is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Allianzim Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzim Large Cap 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 Allianzim Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzim Large Cap has no effect on the direction of AIM ETF i.e., AIM ETF and Allianzim Large go up and down completely randomly.
Pair Corralation between AIM ETF and Allianzim Large
Given the investment horizon of 90 days AIM ETF is expected to generate 1.28 times less return on investment than Allianzim Large. But when comparing it to its historical volatility, AIM ETF Products is 1.87 times less risky than Allianzim Large. It trades about 0.21 of its potential returns per unit of risk. Allianzim Large Cap is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,819 in Allianzim Large Cap on September 1, 2024 and sell it today you would earn a total of 291.00 from holding Allianzim Large Cap or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ETF Products vs. Allianzim Large Cap
Performance |
| Timeline |
| AIM ETF Products |
| Allianzim Large Cap |
AIM ETF and Allianzim Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and Allianzim Large
The main advantage of trading using opposite AIM ETF and Allianzim Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, Allianzim Large 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 Allianzim Large will offset losses from the drop in Allianzim Large's long position.| AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products |
| Allianzim Large vs. AIM ETF Products | Allianzim Large vs. AIM ETF Products | Allianzim Large vs. AIM ETF Products | Allianzim Large vs. AIM ETF Products |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |