Correlation Between Aimfinity Investment and Aura FAT

Can any of the company-specific risk be diversified away by investing in both Aimfinity Investment and Aura FAT 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 Aimfinity Investment and Aura FAT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aimfinity Investment I and Aura FAT Projects, you can compare the effects of market volatilities on Aimfinity Investment and Aura FAT 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 Aimfinity Investment with a short position of Aura FAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aimfinity Investment and Aura FAT.

Diversification Opportunities for Aimfinity Investment and Aura FAT

0.48

Correlation Coefficient

Aimfinity Investment  Aura FAT

Very weak diversification

The 3 months correlation between Aimfinity and Aura is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aimfinity Investment I and Aura FAT Projects in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aura FAT Projects and Aimfinity Investment 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 Aimfinity Investment I are associated (or correlated) with Aura FAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aura FAT Projects has no effect on the direction of Aimfinity Investment i.e., Aimfinity Investment and Aura FAT go up and down completely randomly.

Pair Corralation between Aimfinity Investment and Aura FAT

If you would invest  1,166  in Aimfinity Investment I on September 12, 2024 and sell it today you would earn a total of  34.00  from holding Aimfinity Investment I or generate 2.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

Aimfinity Investment I  vs.  Aura FAT Projects

Aimfinity Investment

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aimfinity Investment I are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Aimfinity Investment is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Aura FAT Projects

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aura FAT Projects has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Aura FAT is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Aimfinity Investment and Aura FAT

The main advantage of trading using opposite Aimfinity Investment and Aura FAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aimfinity Investment position performs unexpectedly, Aura FAT 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 Aura FAT will offset losses from the drop in Aura FAT's long position.

The idea behind Aimfinity Investment I and Aura FAT Projects pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.