Correlation Between AIM ETF and Invesco
Can any of the company-specific risk be diversified away by investing in both AIM ETF and Invesco 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 Invesco 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 Invesco, you can compare the effects of market volatilities on AIM ETF and Invesco 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 Invesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Invesco.
Diversification Opportunities for AIM ETF and Invesco
Very poor diversification
The 3 months correlation between AIM and Invesco is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Invesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco 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 Invesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco has no effect on the direction of AIM ETF i.e., AIM ETF and Invesco go up and down completely randomly.
Pair Corralation between AIM ETF and Invesco
If you would invest 2,502 in AIM ETF Products on September 2, 2024 and sell it today you would earn a total of 183.00 from holding AIM ETF Products or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.79% |
| Values | Daily Returns |
AIM ETF Products vs. Invesco
Performance |
| Timeline |
| AIM ETF Products |
| Invesco |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AIM ETF and Invesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and Invesco
The main advantage of trading using opposite AIM ETF and Invesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, Invesco 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 Invesco will offset losses from the drop in Invesco'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 |
| Invesco vs. iShares Interest Rate | Invesco vs. iShares Interest Rate | Invesco vs. iShares Edge Investment | Invesco vs. iShares Inflation Hedged |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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