Correlation Between AIM ETF and Hartford Multifactor
Can any of the company-specific risk be diversified away by investing in both AIM ETF and Hartford Multifactor 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 Hartford Multifactor 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 Hartford Multifactor Equity, you can compare the effects of market volatilities on AIM ETF and Hartford Multifactor 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 Hartford Multifactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Hartford Multifactor.
Diversification Opportunities for AIM ETF and Hartford Multifactor
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AIM and Hartford is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Hartford Multifactor Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Multifactor 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 Hartford Multifactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Multifactor has no effect on the direction of AIM ETF i.e., AIM ETF and Hartford Multifactor go up and down completely randomly.
Pair Corralation between AIM ETF and Hartford Multifactor
Given the investment horizon of 90 days AIM ETF Products is expected to under-perform the Hartford Multifactor. But the etf apears to be less risky and, when comparing its historical volatility, AIM ETF Products is 1.53 times less risky than Hartford Multifactor. The etf trades about -0.04 of its potential returns per unit of risk. The Hartford Multifactor Equity is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 5,120 in Hartford Multifactor Equity on December 27, 2024 and sell it today you would lose (30.50) from holding Hartford Multifactor Equity or give up 0.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
AIM ETF Products vs. Hartford Multifactor Equity
Performance |
Timeline |
AIM ETF Products |
Hartford Multifactor |
AIM ETF and Hartford Multifactor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AIM ETF and Hartford Multifactor
The main advantage of trading using opposite AIM ETF and Hartford Multifactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, Hartford Multifactor 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 Hartford Multifactor will offset losses from the drop in Hartford Multifactor's long position.AIM ETF vs. FT Vest Equity | AIM ETF vs. Northern Lights | AIM ETF vs. Dimensional International High | AIM ETF vs. First Trust Exchange Traded |
Hartford Multifactor vs. Hartford Multifactor Emerging | Hartford Multifactor vs. Hartford Multifactor Developed | Hartford Multifactor vs. iShares Equity Factor | Hartford Multifactor vs. SPDR MSCI USA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |