Correlation Between AIM ETF and VanEck China
Can any of the company-specific risk be diversified away by investing in both AIM ETF and VanEck China 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 VanEck China 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 VanEck China Bond, you can compare the effects of market volatilities on AIM ETF and VanEck China 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 VanEck China. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and VanEck China.
Diversification Opportunities for AIM ETF and VanEck China
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIM and VanEck is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and VanEck China Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck China Bond 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 VanEck China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck China Bond has no effect on the direction of AIM ETF i.e., AIM ETF and VanEck China go up and down completely randomly.
Pair Corralation between AIM ETF and VanEck China
Given the investment horizon of 90 days AIM ETF Products is expected to generate 261.17 times more return on investment than VanEck China. However, AIM ETF is 261.17 times more volatile than VanEck China Bond. It trades about 0.08 of its potential returns per unit of risk. VanEck China Bond is currently generating about 0.04 per unit of risk. If you would invest 0.01 in AIM ETF Products on August 26, 2024 and sell it today you would earn a total of 2,680 from holding AIM ETF Products or generate 2.67999E7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 34.41% |
| Values | Daily Returns |
AIM ETF Products vs. VanEck China Bond
Performance |
| Timeline |
| AIM ETF Products |
| VanEck China Bond |
AIM ETF and VanEck China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and VanEck China
The main advantage of trading using opposite AIM ETF and VanEck China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, VanEck China 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 VanEck China will offset losses from the drop in VanEck China's long position.| AIM ETF vs. FT Vest Equity | AIM ETF vs. Northern Lights | AIM ETF vs. Dimensional International High | AIM ETF vs. First Trust Exchange Traded |
| VanEck China vs. Vanguard Emerging Markets | VanEck China vs. SPDR FTSE International | VanEck China vs. FT Vest Equity | VanEck China vs. Zillow Group Class |
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.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |