Correlation Between AIM ETF and Themes Natural
Can any of the company-specific risk be diversified away by investing in both AIM ETF and Themes Natural 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 Themes Natural 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 Themes Natural Monopoly, you can compare the effects of market volatilities on AIM ETF and Themes Natural 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 Themes Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Themes Natural.
Diversification Opportunities for AIM ETF and Themes Natural
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AIM and Themes is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Themes Natural Monopoly in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Natural Monopoly 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 Themes Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Natural Monopoly has no effect on the direction of AIM ETF i.e., AIM ETF and Themes Natural go up and down completely randomly.
Pair Corralation between AIM ETF and Themes Natural
Given the investment horizon of 90 days AIM ETF is expected to generate 1.76 times less return on investment than Themes Natural. But when comparing it to its historical volatility, AIM ETF Products is 3.09 times less risky than Themes Natural. It trades about 0.29 of its potential returns per unit of risk. Themes Natural Monopoly is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,912 in Themes Natural Monopoly on August 26, 2024 and sell it today you would earn a total of 73.00 from holding Themes Natural Monopoly or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ETF Products vs. Themes Natural Monopoly
Performance |
| Timeline |
| AIM ETF Products |
| Themes Natural Monopoly |
AIM ETF and Themes Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and Themes Natural
The main advantage of trading using opposite AIM ETF and Themes Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, Themes Natural 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 Themes Natural will offset losses from the drop in Themes Natural'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 |
| Themes Natural vs. Pacer Nasdaq International | Themes Natural vs. Pacer Funds Trust | Themes Natural vs. FT Vest Equity | Themes Natural 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |