Correlation Between AIM ETF and DBX ETF
Can any of the company-specific risk be diversified away by investing in both AIM ETF and DBX ETF 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 DBX ETF 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 DBX ETF Trust, you can compare the effects of market volatilities on AIM ETF and DBX ETF 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 DBX ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and DBX ETF.
Diversification Opportunities for AIM ETF and DBX ETF
Poor diversification
The 3 months correlation between AIM and DBX is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and DBX ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBX ETF Trust 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 DBX ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBX ETF Trust has no effect on the direction of AIM ETF i.e., AIM ETF and DBX ETF go up and down completely randomly.
Pair Corralation between AIM ETF and DBX ETF
If you would invest 2,638 in AIM ETF Products on September 5, 2024 and sell it today you would earn a total of 50.00 from holding AIM ETF Products or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 9.09% |
| Values | Daily Returns |
AIM ETF Products vs. DBX ETF Trust
Performance |
| Timeline |
| AIM ETF Products |
| DBX ETF Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
AIM ETF and DBX ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and DBX ETF
The main advantage of trading using opposite AIM ETF and DBX ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, DBX ETF 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 DBX ETF will offset losses from the drop in DBX ETF's long position.| AIM ETF vs. FT Vest Equity | AIM ETF vs. Northern Lights | AIM ETF vs. Dimensional International High | AIM ETF vs. JPMorgan Fundamental Data |
| DBX ETF vs. Xtrackers MSCI EAFE | DBX ETF vs. SPDR MSCI Emerging | DBX ETF vs. NuShares ETF Trust | DBX ETF vs. Xtrackers MSCI USA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |