Correlation Between AIM ETF and ETFis Series
Can any of the company-specific risk be diversified away by investing in both AIM ETF and ETFis Series 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 ETFis Series 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 ETFis Series Trust, you can compare the effects of market volatilities on AIM ETF and ETFis Series 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 ETFis Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and ETFis Series.
Diversification Opportunities for AIM ETF and ETFis Series
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIM and ETFis is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and ETFis Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETFis Series 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 ETFis Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETFis Series Trust has no effect on the direction of AIM ETF i.e., AIM ETF and ETFis Series go up and down completely randomly.
Pair Corralation between AIM ETF and ETFis Series
Given the investment horizon of 90 days AIM ETF Products is expected to generate 0.32 times more return on investment than ETFis Series. However, AIM ETF Products is 3.12 times less risky than ETFis Series. It trades about 0.16 of its potential returns per unit of risk. ETFis Series Trust is currently generating about 0.0 per unit of risk. If you would invest 2,676 in AIM ETF Products on September 15, 2024 and sell it today you would earn a total of 13.00 from holding AIM ETF Products or generate 0.49% 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. ETFis Series Trust
Performance |
| Timeline |
| AIM ETF Products |
| ETFis Series Trust |
AIM ETF and ETFis Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and ETFis Series
The main advantage of trading using opposite AIM ETF and ETFis Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, ETFis Series 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 ETFis Series will offset losses from the drop in ETFis Series' long position.| AIM ETF vs. First Trust Cboe | AIM ETF vs. FT Cboe Vest | AIM ETF vs. Innovator SP 500 | AIM ETF vs. Innovator SP 500 |
| ETFis Series vs. First Trust Tactical | ETFis Series vs. First Trust Senior | ETFis Series vs. SPDR ICE Preferred |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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