Correlation Between AIM ETF and Fidelity Sustainable
Can any of the company-specific risk be diversified away by investing in both AIM ETF and Fidelity Sustainable 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 Fidelity Sustainable 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 Fidelity Sustainable Low, you can compare the effects of market volatilities on AIM ETF and Fidelity Sustainable 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 Fidelity Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Fidelity Sustainable.
Diversification Opportunities for AIM ETF and Fidelity Sustainable
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AIM and Fidelity is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Fidelity Sustainable Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sustainable Low 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 Fidelity Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sustainable Low has no effect on the direction of AIM ETF i.e., AIM ETF and Fidelity Sustainable go up and down completely randomly.
Pair Corralation between AIM ETF and Fidelity Sustainable
Given the investment horizon of 90 days AIM ETF Products is expected to generate 1.67 times more return on investment than Fidelity Sustainable. However, AIM ETF is 1.67 times more volatile than Fidelity Sustainable Low. It trades about 0.49 of its potential returns per unit of risk. Fidelity Sustainable Low is currently generating about 0.15 per unit of risk. If you would invest 2,638 in AIM ETF Products on September 3, 2024 and sell it today you would earn a total of 47.00 from holding AIM ETF Products or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ETF Products vs. Fidelity Sustainable Low
Performance |
| Timeline |
| AIM ETF Products |
| Fidelity Sustainable Low |
AIM ETF and Fidelity Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and Fidelity Sustainable
The main advantage of trading using opposite AIM ETF and Fidelity Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, Fidelity Sustainable 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 Fidelity Sustainable will offset losses from the drop in Fidelity Sustainable'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 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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