Correlation Between AIM ETF and VanEck Emerging
Can any of the company-specific risk be diversified away by investing in both AIM ETF and VanEck Emerging 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 VanEck Emerging 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 VanEck Emerging Markets, you can compare the effects of market volatilities on AIM ETF and VanEck Emerging 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 VanEck Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and VanEck Emerging.
Diversification Opportunities for AIM ETF and VanEck Emerging
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AIM and VanEck is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and VanEck Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Emerging Markets 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 VanEck Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Emerging Markets has no effect on the direction of AIM ETF i.e., AIM ETF and VanEck Emerging go up and down completely randomly.
Pair Corralation between AIM ETF and VanEck Emerging
Given the investment horizon of 90 days AIM ETF Products is expected to generate 199.17 times more return on investment than VanEck Emerging. However, AIM ETF is 199.17 times more volatile than VanEck Emerging Markets. It trades about 0.08 of its potential returns per unit of risk. VanEck Emerging Markets is currently generating about 0.11 per unit of risk. If you would invest 0.01 in AIM ETF Products on August 29, 2024 and sell it today you would earn a total of 2,678 from holding AIM ETF Products or generate 2.67799E7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 34.14% |
| Values | Daily Returns |
AIM ETF Products vs. VanEck Emerging Markets
Performance |
| Timeline |
| AIM ETF Products |
| VanEck Emerging Markets |
AIM ETF and VanEck Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and VanEck Emerging
The main advantage of trading using opposite AIM ETF and VanEck Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, VanEck Emerging 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 VanEck Emerging will offset losses from the drop in VanEck Emerging'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 |
| VanEck Emerging vs. BondBloxx ETF Trust | VanEck Emerging vs. Virtus ETF Trust | VanEck Emerging vs. Ocean Park High | VanEck Emerging vs. Virtus ETF Trust |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |