Correlation Between AIM ETF and 23291KAK1

Can any of the company-specific risk be diversified away by investing in both AIM ETF and 23291KAK1 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 23291KAK1 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 DH EUROPE FINANCE, you can compare the effects of market volatilities on AIM ETF and 23291KAK1 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 23291KAK1. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and 23291KAK1.

Diversification Opportunities for AIM ETF and 23291KAK1

-0.73

Correlation Coefficient

AIM ETF  23291KAK1

Pay attention - limited upside

The 3 months correlation between AIM and 23291KAK1 is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and DH EUROPE FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DH EUROPE FINANCE 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 23291KAK1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DH EUROPE FINANCE has no effect on the direction of AIM ETF i.e., AIM ETF and 23291KAK1 go up and down completely randomly.

Pair Corralation between AIM ETF and 23291KAK1

Given the investment horizon of 90 days AIM ETF Products is expected to generate 0.2 times more return on investment than 23291KAK1. However, AIM ETF Products is 5.03 times less risky than 23291KAK1. It trades about 0.14 of its potential returns per unit of risk. DH EUROPE FINANCE is currently generating about 0.0 per unit of risk. If you would invest  3,218  in AIM ETF Products on September 23, 2024 and sell it today you would earn a total of  133.00  from holding AIM ETF Products or generate 4.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	77.95%
Values	Daily Returns

AIM ETF Products  vs.  DH EUROPE FINANCE

AIM ETF Products

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AIM ETF Products are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, AIM ETF is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

DH EUROPE FINANCE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DH EUROPE FINANCE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for DH EUROPE FINANCE investors.

Pair Trading with AIM ETF and 23291KAK1

The main advantage of trading using opposite AIM ETF and 23291KAK1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, 23291KAK1 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 23291KAK1 will offset losses from the drop in 23291KAK1's long position.

The idea behind AIM ETF Products and DH EUROPE FINANCE 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.