Correlation Between Ab Small and Aim International
Can any of the company-specific risk be diversified away by investing in both Ab Small 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 Ab Small and Aim International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Small Cap and Aim International Mutual, you can compare the effects of market volatilities on Ab Small 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 Ab Small with a short position of Aim International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Small and Aim International.
Diversification Opportunities for Ab Small and Aim International
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SCYVX and Aim is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ab Small Cap 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 Ab Small 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 Ab Small Cap 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 Ab Small i.e., Ab Small and Aim International go up and down completely randomly.
Pair Corralation between Ab Small and Aim International
If you would invest 1,602 in Ab Small Cap on September 14, 2024 and sell it today you would earn a total of 37.00 from holding Ab Small Cap or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ab Small Cap vs. Aim International Mutual
Performance |
| Timeline |
| Ab Small Cap |
| Aim International Mutual |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ab Small and Aim International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Small and Aim International
The main advantage of trading using opposite Ab Small and Aim International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Small 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.| Ab Small vs. Small Cap Core | Ab Small vs. Aquagold International | Ab Small vs. Morningstar Unconstrained Allocation | Ab Small vs. Thrivent High Yield |
| Aim International vs. Goldman Sachs Inflation | Aim International vs. Atac Inflation Rotation | Aim International vs. Short Duration Inflation | Aim International vs. Loomis Sayles Inflation |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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