Correlation Between AIM ETF and Brendan Wood
Can any of the company-specific risk be diversified away by investing in both AIM ETF and Brendan Wood 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 Brendan Wood 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 Brendan Wood TopGun, you can compare the effects of market volatilities on AIM ETF and Brendan Wood 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 Brendan Wood. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Brendan Wood.
Diversification Opportunities for AIM ETF and Brendan Wood
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AIM and Brendan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Brendan Wood TopGun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brendan Wood TopGun 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 Brendan Wood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brendan Wood TopGun has no effect on the direction of AIM ETF i.e., AIM ETF and Brendan Wood go up and down completely randomly.
Pair Corralation between AIM ETF and Brendan Wood
Given the investment horizon of 90 days AIM ETF is expected to generate 1.76 times less return on investment than Brendan Wood. But when comparing it to its historical volatility, AIM ETF Products is 2.21 times less risky than Brendan Wood. It trades about 0.15 of its potential returns per unit of risk. Brendan Wood TopGun is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,171 in Brendan Wood TopGun on September 1, 2024 and sell it today you would earn a total of 412.00 from holding Brendan Wood TopGun or generate 12.99% 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. Brendan Wood TopGun
Performance |
| Timeline |
| AIM ETF Products |
| Brendan Wood TopGun |
AIM ETF and Brendan Wood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and Brendan Wood
The main advantage of trading using opposite AIM ETF and Brendan Wood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, Brendan Wood 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 Brendan Wood will offset losses from the drop in Brendan Wood's long position.| AIM ETF vs. FT Vest Equity | AIM ETF vs. Northern Lights | AIM ETF vs. Dimensional International High | AIM ETF vs. Matthews China Discovery |
| Brendan Wood vs. Vanguard Total Stock | Brendan Wood vs. SPDR SP 500 | Brendan Wood vs. iShares Core SP | Brendan Wood vs. Vanguard Dividend Appreciation |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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