Correlation Between AIM ETF and ETF Opportunities
Can any of the company-specific risk be diversified away by investing in both AIM ETF and ETF Opportunities 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 ETF Opportunities 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 ETF Opportunities Trust, you can compare the effects of market volatilities on AIM ETF and ETF Opportunities 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 ETF Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and ETF Opportunities.
Diversification Opportunities for AIM ETF and ETF Opportunities
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AIM and ETF is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and ETF Opportunities Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETF Opportunities Trust 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 ETF Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETF Opportunities Trust has no effect on the direction of AIM ETF i.e., AIM ETF and ETF Opportunities go up and down completely randomly.
Pair Corralation between AIM ETF and ETF Opportunities
Given the investment horizon of 90 days AIM ETF is expected to generate 2.05 times less return on investment than ETF Opportunities. But when comparing it to its historical volatility, AIM ETF Products is 2.28 times less risky than ETF Opportunities. It trades about 0.15 of its potential returns per unit of risk. ETF Opportunities Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,971 in ETF Opportunities Trust on August 29, 2024 and sell it today you would earn a total of 594.00 from holding ETF Opportunities Trust or generate 14.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
AIM ETF Products vs. ETF Opportunities Trust
Performance |
| Timeline |
| AIM ETF Products |
| ETF Opportunities Trust |
AIM ETF and ETF Opportunities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and ETF Opportunities
The main advantage of trading using opposite AIM ETF and ETF Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, ETF Opportunities 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 ETF Opportunities will offset losses from the drop in ETF Opportunities' long position.| AIM ETF vs. ABIVAX Socit Anonyme | AIM ETF vs. Pinnacle Sherman Multi Strategy | AIM ETF vs. Morningstar Unconstrained Allocation | AIM ETF vs. SPACE |
| ETF Opportunities vs. JPMorgan BetaBuilders International | ETF Opportunities vs. JPMorgan Core Plus | ETF Opportunities vs. JPMorgan BetaBuilders Canada | ETF Opportunities vs. JPMorgan Emerging Markets |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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