Correlation Between Aimia Pref and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Aimia Pref and Dow Jones 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 Pref and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aimia Pref C and Dow Jones Industrial, you can compare the effects of market volatilities on Aimia Pref and Dow Jones 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 Pref with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aimia Pref and Dow Jones.
Diversification Opportunities for Aimia Pref and Dow Jones
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aimia and Dow is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Aimia Pref C and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Aimia Pref 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 Pref C are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Aimia Pref i.e., Aimia Pref and Dow Jones go up and down completely randomly.
Pair Corralation between Aimia Pref and Dow Jones
Assuming the 90 days trading horizon Aimia Pref C is expected to generate 1.54 times more return on investment than Dow Jones. However, Aimia Pref is 1.54 times more volatile than Dow Jones Industrial. It trades about 0.19 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.12 per unit of risk. If you would invest 2,037 in Aimia Pref C on September 1, 2025 and sell it today you would earn a total of 267.00 from holding Aimia Pref C or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aimia Pref C vs. Dow Jones Industrial
Performance |
| Timeline |
Aimia Pref and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Aimia Pref C
Pair trading matchups for Aimia Pref
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Aimia Pref and Dow Jones
The main advantage of trading using opposite Aimia Pref and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aimia Pref position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Aimia Pref vs. Major Drilling Group | Aimia Pref vs. Contagious Gaming | Aimia Pref vs. Magna Mining | Aimia Pref vs. Primaris Retail RE |
| Dow Jones vs. Internet Gold Golden | Dow Jones vs. 24SevenOffice Group AB | Dow Jones vs. Erf Wireless | Dow Jones vs. Space Communication |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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