Correlation Between 1919 Financial and Aim International
Can any of the company-specific risk be diversified away by investing in both 1919 Financial 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 1919 Financial and Aim International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1919 Financial Services and Aim International Mutual, you can compare the effects of market volatilities on 1919 Financial 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 1919 Financial with a short position of Aim International. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1919 Financial and Aim International.
Diversification Opportunities for 1919 Financial and Aim International
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 1919 and Aim is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding 1919 Financial Services 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 1919 Financial 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 1919 Financial Services 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 1919 Financial i.e., 1919 Financial and Aim International go up and down completely randomly.
Pair Corralation between 1919 Financial and Aim International
Assuming the 90 days horizon 1919 Financial Services is expected to generate 1.18 times more return on investment than Aim International. However, 1919 Financial is 1.18 times more volatile than Aim International Mutual. It trades about 0.12 of its potential returns per unit of risk. Aim International Mutual is currently generating about 0.08 per unit of risk. If you would invest 2,199 in 1919 Financial Services on September 4, 2024 and sell it today you would earn a total of 1,230 from holding 1919 Financial Services or generate 55.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 8.06% |
| Values | Daily Returns |
1919 Financial Services vs. Aim International Mutual
Performance |
| Timeline |
| 1919 Financial Services |
| Aim International Mutual |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
1919 Financial and Aim International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1919 Financial and Aim International
The main advantage of trading using opposite 1919 Financial and Aim International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1919 Financial 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.| 1919 Financial vs. American Century Etf | 1919 Financial vs. Royce Opportunity Fund | 1919 Financial vs. Ultramid Cap Profund Ultramid Cap | 1919 Financial vs. Mutual Of America |
| Aim International vs. Prudential Jennison Financial | Aim International vs. Davis Financial Fund | Aim International vs. 1919 Financial Services | Aim International vs. Angel Oak Financial |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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