Correlation Between Aimia Srs and Timbercreek Financial
Can any of the company-specific risk be diversified away by investing in both Aimia Srs and Timbercreek Financial 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 Aimia Srs and Timbercreek Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aimia Srs 1 and Timbercreek Financial Corp, you can compare the effects of market volatilities on Aimia Srs and Timbercreek Financial 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 Aimia Srs with a short position of Timbercreek Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aimia Srs and Timbercreek Financial.
Diversification Opportunities for Aimia Srs and Timbercreek Financial
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aimia and Timbercreek is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Aimia Srs 1 and Timbercreek Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timbercreek Financial and Aimia Srs 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 Aimia Srs 1 are associated (or correlated) with Timbercreek Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timbercreek Financial has no effect on the direction of Aimia Srs i.e., Aimia Srs and Timbercreek Financial go up and down completely randomly.
Pair Corralation between Aimia Srs and Timbercreek Financial
Assuming the 90 days trading horizon Aimia Srs 1 is expected to generate 1.31 times more return on investment than Timbercreek Financial. However, Aimia Srs is 1.31 times more volatile than Timbercreek Financial Corp. It trades about 0.08 of its potential returns per unit of risk. Timbercreek Financial Corp is currently generating about -0.14 per unit of risk. If you would invest 1,959 in Aimia Srs 1 on September 4, 2025 and sell it today you would earn a total of 141.00 from holding Aimia Srs 1 or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aimia Srs 1 vs. Timbercreek Financial Corp
Performance |
| Timeline |
| Aimia Srs 1 |
| Timbercreek Financial |
Aimia Srs and Timbercreek Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aimia Srs and Timbercreek Financial
The main advantage of trading using opposite Aimia Srs and Timbercreek Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aimia Srs position performs unexpectedly, Timbercreek Financial 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 Timbercreek Financial will offset losses from the drop in Timbercreek Financial's long position.| Aimia Srs vs. Russell Investments Global | Aimia Srs vs. Computer Modelling Group | Aimia Srs vs. Constellation Software | Aimia Srs vs. A W FOOD |
| Timbercreek Financial vs. Elixxer | Timbercreek Financial vs. Cielo Waste Solutions | Timbercreek Financial vs. Rockridge Resources | Timbercreek Financial vs. Pentagon I Capital |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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