Correlation Between Aimfinity Investment and SkyWest

Can any of the company-specific risk be diversified away by investing in both Aimfinity Investment and SkyWest 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 SkyWest 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 SkyWest, you can compare the effects of market volatilities on Aimfinity Investment and SkyWest 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 SkyWest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aimfinity Investment and SkyWest.

Diversification Opportunities for Aimfinity Investment and SkyWest

-0.13

Correlation Coefficient

Aimfinity Investment  SkyWest

Good diversification

The 3 months correlation between Aimfinity and SkyWest is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aimfinity Investment I and SkyWest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SkyWest 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 SkyWest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SkyWest has no effect on the direction of Aimfinity Investment i.e., Aimfinity Investment and SkyWest go up and down completely randomly.

Pair Corralation between Aimfinity Investment and SkyWest

Assuming the 90 days horizon Aimfinity Investment I is expected to generate 1.28 times more return on investment than SkyWest. However, Aimfinity Investment is 1.28 times more volatile than SkyWest. It trades about 0.07 of its potential returns per unit of risk. SkyWest is currently generating about -0.07 per unit of risk. If you would invest  1,210  in Aimfinity Investment I on December 30, 2024 and sell it today you would earn a total of  137.00  from holding Aimfinity Investment I or generate 11.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Aimfinity Investment I  vs.  SkyWest

Aimfinity Investment

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aimfinity Investment I are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Aimfinity Investment unveiled solid returns over the last few months and may actually be approaching a breakup point.

SkyWest

Risk-Adjusted Performance

Very Weak

Over the last 90 days SkyWest has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Aimfinity Investment and SkyWest

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

The idea behind Aimfinity Investment I and SkyWest 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.