Correlation Between Abrdn Emerging and AIM ETF
Can any of the company-specific risk be diversified away by investing in both Abrdn Emerging and AIM ETF 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 Abrdn Emerging and AIM ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between abrdn Emerging Markets and AIM ETF Products, you can compare the effects of market volatilities on Abrdn Emerging and AIM ETF 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 Abrdn Emerging with a short position of AIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Emerging and AIM ETF.
Diversification Opportunities for Abrdn Emerging and AIM ETF
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Abrdn and AIM is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Emerging Markets and AIM ETF Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ETF Products and Abrdn Emerging 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 abrdn Emerging Markets are associated (or correlated) with AIM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM ETF Products has no effect on the direction of Abrdn Emerging i.e., Abrdn Emerging and AIM ETF go up and down completely randomly.
Pair Corralation between Abrdn Emerging and AIM ETF
Given the investment horizon of 90 days abrdn Emerging Markets is expected to generate 4.05 times more return on investment than AIM ETF. However, Abrdn Emerging is 4.05 times more volatile than AIM ETF Products. It trades about 0.18 of its potential returns per unit of risk. AIM ETF Products is currently generating about 0.22 per unit of risk. If you would invest 3,612 in abrdn Emerging Markets on October 10, 2025 and sell it today you would earn a total of 385.00 from holding abrdn Emerging Markets or generate 10.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
abrdn Emerging Markets vs. AIM ETF Products
Performance |
| Timeline |
| abrdn Emerging Markets |
| AIM ETF Products |
Abrdn Emerging and AIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Emerging and AIM ETF
The main advantage of trading using opposite Abrdn Emerging and AIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Emerging position performs unexpectedly, AIM ETF 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 AIM ETF will offset losses from the drop in AIM ETF's long position.| Abrdn Emerging vs. EA Series Trust | Abrdn Emerging vs. SPDR MSCI Emerging | Abrdn Emerging vs. Hoya Capital High | Abrdn Emerging vs. WisdomTree Emerging Markets |
| AIM ETF vs. FT Vest Equity | AIM ETF vs. Northern Lights | AIM ETF vs. Diamond Hill Funds | AIM ETF vs. Dimensional International High |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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