Correlation Between AIM ETF and Tidal ETF
Can any of the company-specific risk be diversified away by investing in both AIM ETF and Tidal 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 Tidal 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 Tidal ETF Trust, you can compare the effects of market volatilities on AIM ETF and Tidal 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 Tidal ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Tidal ETF.
Diversification Opportunities for AIM ETF and Tidal ETF
Excellent diversification
The 3 months correlation between AIM and Tidal is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Tidal ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal 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 Tidal ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal ETF Trust has no effect on the direction of AIM ETF i.e., AIM ETF and Tidal ETF go up and down completely randomly.
Pair Corralation between AIM ETF and Tidal ETF
Given the investment horizon of 90 days AIM ETF Products is expected to generate 0.14 times more return on investment than Tidal ETF. However, AIM ETF Products is 6.95 times less risky than Tidal ETF. It trades about 0.51 of its potential returns per unit of risk. Tidal ETF Trust is currently generating about 0.05 per unit of risk. If you would invest 2,634 in AIM ETF Products on September 1, 2024 and sell it today you would earn a total of 51.00 from holding AIM ETF Products or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
AIM ETF Products vs. Tidal ETF Trust
Performance |
| Timeline |
| AIM ETF Products |
| Tidal ETF Trust |
AIM ETF and Tidal ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and Tidal ETF
The main advantage of trading using opposite AIM ETF and Tidal ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, Tidal 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 Tidal ETF will offset losses from the drop in Tidal ETF'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 |
| Tidal ETF vs. iShares Core Growth | Tidal ETF vs. ClearShares OCIO ETF | Tidal ETF vs. Collaborative Investment Series | Tidal ETF vs. Northern Lights |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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