Correlation Between Diamond Hill and AIM ETF
Can any of the company-specific risk be diversified away by investing in both Diamond Hill 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 Diamond Hill and AIM ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamond Hill Funds and AIM ETF Products, you can compare the effects of market volatilities on Diamond Hill 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 Diamond Hill with a short position of AIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Hill and AIM ETF.
Diversification Opportunities for Diamond Hill and AIM ETF
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Diamond and AIM is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Hill Funds 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 Diamond Hill 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 Diamond Hill Funds 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 Diamond Hill i.e., Diamond Hill and AIM ETF go up and down completely randomly.
Pair Corralation between Diamond Hill and AIM ETF
Given the investment horizon of 90 days Diamond Hill Funds is expected to under-perform the AIM ETF. In addition to that, Diamond Hill is 4.44 times more volatile than AIM ETF Products. It trades about -0.03 of its total potential returns per unit of risk. AIM ETF Products is currently generating about 0.15 per unit of volatility. If you would invest 3,281 in AIM ETF Products on September 10, 2025 and sell it today you would earn a total of 51.00 from holding AIM ETF Products or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 79.37% |
| Values | Daily Returns |
Diamond Hill Funds vs. AIM ETF Products
Performance |
| Timeline |
| Diamond Hill Funds |
| AIM ETF Products |
Diamond Hill and AIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamond Hill and AIM ETF
The main advantage of trading using opposite Diamond Hill and AIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Hill 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.| Diamond Hill vs. RiverFront Dynamic Flex Cap | Diamond Hill vs. First Trust Horizon | Diamond Hill vs. Formidable ETF | Diamond Hill vs. Formidable Fortress ETF |
| AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products | AIM ETF vs. Pacer Swan SOS | AIM ETF vs. Allianzim Large Cap |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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