Correlation Between AIM ETF and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both AIM ETF and SPDR Bloomberg 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 SPDR Bloomberg 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 SPDR Bloomberg Emerging, you can compare the effects of market volatilities on AIM ETF and SPDR Bloomberg 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 SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and SPDR Bloomberg.
Diversification Opportunities for AIM ETF and SPDR Bloomberg
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AIM and SPDR is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and SPDR Bloomberg Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Emerging 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 SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Emerging has no effect on the direction of AIM ETF i.e., AIM ETF and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between AIM ETF and SPDR Bloomberg
Given the investment horizon of 90 days AIM ETF Products is expected to generate 0.36 times more return on investment than SPDR Bloomberg. However, AIM ETF Products is 2.79 times less risky than SPDR Bloomberg. It trades about 0.25 of its potential returns per unit of risk. SPDR Bloomberg Emerging is currently generating about -0.1 per unit of risk. If you would invest 2,649 in AIM ETF Products on August 27, 2024 and sell it today you would earn a total of 31.00 from holding AIM ETF Products or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ETF Products vs. SPDR Bloomberg Emerging
Performance |
| Timeline |
| AIM ETF Products |
| SPDR Bloomberg Emerging |
AIM ETF and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and SPDR Bloomberg
The main advantage of trading using opposite AIM ETF and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, SPDR Bloomberg 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 SPDR Bloomberg will offset losses from the drop in SPDR Bloomberg'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 |
| SPDR Bloomberg vs. Schwab Fundamental International | SPDR Bloomberg vs. Xtrackers International Real | SPDR Bloomberg vs. Schwab Fundamental Small | SPDR Bloomberg vs. Schwab Fundamental Emerging |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |