Correlation Between AimRite Holdings and Blue Diamond

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

Diversification Opportunities for AimRite Holdings and Blue Diamond

0.0

Correlation Coefficient

AimRite Holdings  Blue Diamond

Pay attention - limited upside

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

Pair Corralation between AimRite Holdings and Blue Diamond

If you would invest  0.02  in Blue Diamond Ventures on December 28, 2024 and sell it today you would lose (0.01) from holding Blue Diamond Ventures or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

AimRite Holdings Corp  vs.  Blue Diamond Ventures

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.

Blue Diamond Ventures

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Diamond Ventures are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating fundamental indicators, Blue Diamond showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AimRite Holdings and Blue Diamond

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

The idea behind AimRite Holdings Corp and Blue Diamond Ventures 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.