Correlation Between Bank of New York and Aimia Pref
Can any of the company-specific risk be diversified away by investing in both Bank of New York and Aimia Pref 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 Bank of New York and Aimia Pref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Banc Corp and Aimia Pref C, you can compare the effects of market volatilities on Bank of New York and Aimia Pref 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 Bank of New York with a short position of Aimia Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and Aimia Pref.
Diversification Opportunities for Bank of New York and Aimia Pref
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Aimia is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Banc Corp and Aimia Pref C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aimia Pref C and Bank of New York 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 Canadian Banc Corp are associated (or correlated) with Aimia Pref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aimia Pref C has no effect on the direction of Bank of New York i.e., Bank of New York and Aimia Pref go up and down completely randomly.
Pair Corralation between Bank of New York and Aimia Pref
Assuming the 90 days horizon Canadian Banc Corp is expected to generate 0.9 times more return on investment than Aimia Pref. However, Canadian Banc Corp is 1.11 times less risky than Aimia Pref. It trades about 0.36 of its potential returns per unit of risk. Aimia Pref C is currently generating about 0.14 per unit of risk. If you would invest 1,121 in Canadian Banc Corp on August 17, 2025 and sell it today you would earn a total of 275.00 from holding Canadian Banc Corp or generate 24.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Banc Corp vs. Aimia Pref C
Performance |
| Timeline |
| Canadian Banc Corp |
| Aimia Pref C |
Bank of New York and Aimia Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York and Aimia Pref
The main advantage of trading using opposite Bank of New York and Aimia Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, Aimia Pref 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 Aimia Pref will offset losses from the drop in Aimia Pref's long position.| Bank of New York vs. Life Banc Split | Bank of New York vs. Financial 15 Split | Bank of New York vs. North American Financial | Bank of New York vs. Fiera Capital |
| Aimia Pref vs. Life Banc Split | Aimia Pref vs. Canadian Banc Corp | Aimia Pref vs. North American Financial | Aimia Pref vs. Queens Road 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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