Correlation Between AIM ETF and Advanced Container
Can any of the company-specific risk be diversified away by investing in both AIM ETF and Advanced Container 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 Advanced Container 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 Advanced Container Technologies, you can compare the effects of market volatilities on AIM ETF and Advanced Container 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 Advanced Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Advanced Container.
Diversification Opportunities for AIM ETF and Advanced Container
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AIM and Advanced is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Advanced Container Technologie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Container 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 Advanced Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Container has no effect on the direction of AIM ETF i.e., AIM ETF and Advanced Container go up and down completely randomly.
Pair Corralation between AIM ETF and Advanced Container
Given the investment horizon of 90 days AIM ETF is expected to generate 7.05 times less return on investment than Advanced Container. But when comparing it to its historical volatility, AIM ETF Products is 26.71 times less risky than Advanced Container. It trades about 0.15 of its potential returns per unit of risk. Advanced Container Technologies is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Advanced Container Technologies on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Advanced Container Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
AIM ETF Products vs. Advanced Container Technologie
Performance |
| Timeline |
| AIM ETF Products |
| Advanced Container |
AIM ETF and Advanced Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and Advanced Container
The main advantage of trading using opposite AIM ETF and Advanced Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, Advanced Container 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 Advanced Container will offset losses from the drop in Advanced Container's long position.| AIM ETF vs. Innovator ETFs Trust | AIM ETF vs. First Trust Cboe | AIM ETF vs. Innovator SP 500 | AIM ETF vs. Innovator SP 500 |
| Advanced Container vs. Sonoco Products | Advanced Container vs. Avery Dennison Corp | Advanced Container vs. Ardagh Metal Packaging | Advanced Container vs. Ball Corporation |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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