Correlation Between Pender Real and Aim International
Can any of the company-specific risk be diversified away by investing in both Pender Real 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 Pender Real and Aim International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pender Real Estate and Aim International Mutual, you can compare the effects of market volatilities on Pender Real 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 Pender Real with a short position of Aim International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pender Real and Aim International.
Diversification Opportunities for Pender Real and Aim International
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pender and Aim is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Pender Real Estate 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 Pender Real 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 Pender Real Estate 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 Pender Real i.e., Pender Real and Aim International go up and down completely randomly.
Pair Corralation between Pender Real and Aim International
If you would invest 932.00 in Pender Real Estate on September 4, 2024 and sell it today you would earn a total of 72.00 from holding Pender Real Estate or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Pender Real Estate vs. Aim International Mutual
Performance |
| Timeline |
| Pender Real Estate |
| Aim International Mutual |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pender Real and Aim International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pender Real and Aim International
The main advantage of trading using opposite Pender Real and Aim International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pender Real 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.| Pender Real vs. Federated Pennsylvania Municipal | Pender Real vs. Vanguard California Long Term | Pender Real vs. Lind Capital Partners | Pender Real vs. Franklin High Yield |
| Aim International vs. Pender Real Estate | Aim International vs. Deutsche Real Estate | Aim International vs. Nuveen Real Estate | Aim International vs. Virtus Real Estate |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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