Correlation Between AIM ETF and Iq Candriam
Can any of the company-specific risk be diversified away by investing in both AIM ETF and Iq Candriam 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 Iq Candriam 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 Iq Candriam ESG, you can compare the effects of market volatilities on AIM ETF and Iq Candriam 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 Iq Candriam. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Iq Candriam.
Diversification Opportunities for AIM ETF and Iq Candriam
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AIM and IQSM is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Iq Candriam ESG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iq Candriam ESG 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 Iq Candriam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iq Candriam ESG has no effect on the direction of AIM ETF i.e., AIM ETF and Iq Candriam go up and down completely randomly.
Pair Corralation between AIM ETF and Iq Candriam
Given the investment horizon of 90 days AIM ETF is expected to generate 2.11 times less return on investment than Iq Candriam. But when comparing it to its historical volatility, AIM ETF Products is 2.63 times less risky than Iq Candriam. It trades about 0.15 of its potential returns per unit of risk. Iq Candriam ESG is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,039 in Iq Candriam ESG on September 1, 2024 and sell it today you would earn a total of 478.00 from holding Iq Candriam ESG or generate 15.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
AIM ETF Products vs. Iq Candriam ESG
Performance |
| Timeline |
| AIM ETF Products |
| Iq Candriam ESG |
AIM ETF and Iq Candriam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and Iq Candriam
The main advantage of trading using opposite AIM ETF and Iq Candriam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, Iq Candriam 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 Iq Candriam will offset losses from the drop in Iq Candriam's long position.| AIM ETF vs. FT Vest Equity | AIM ETF vs. Northern Lights | AIM ETF vs. Dimensional International High | AIM ETF vs. Matthews China Discovery |
| Iq Candriam vs. JPMorgan Fundamental Data | Iq Candriam vs. Vanguard Mid Cap Index | Iq Candriam vs. SPDR SP 400 | Iq Candriam vs. SPDR SP 400 |
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.
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