Correlation Between AimRite Holdings and Aerius International

Can any of the company-specific risk be diversified away by investing in both AimRite Holdings and Aerius International 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 AimRite Holdings and Aerius International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AimRite Holdings Corp and Aerius International, you can compare the effects of market volatilities on AimRite Holdings and Aerius International 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 AimRite Holdings with a short position of Aerius International. Check out your portfolio center. Please also check ongoing floating volatility patterns of AimRite Holdings and Aerius International.

Diversification Opportunities for AimRite Holdings and Aerius International

0.0

Correlation Coefficient

AimRite Holdings  Aerius International

Pay attention - limited upside

The 3 months correlation between AimRite and Aerius is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AimRite Holdings Corp and Aerius International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerius International and AimRite Holdings 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 AimRite Holdings Corp are associated (or correlated) with Aerius International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerius International has no effect on the direction of AimRite Holdings i.e., AimRite Holdings and Aerius International go up and down completely randomly.

Pair Corralation between AimRite Holdings and Aerius International

If you would invest  0.17  in Aerius International on December 29, 2024 and sell it today you would earn a total of  0.01  from holding Aerius International or generate 5.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

AimRite Holdings Corp  vs.  Aerius International

AimRite Holdings Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days AimRite Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, AimRite Holdings is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Aerius International

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Aerius International are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Aerius International unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AimRite Holdings and Aerius International

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

The idea behind AimRite Holdings Corp and Aerius International 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..