Correlation Between Alphabet and Aimia Pref
Can any of the company-specific risk be diversified away by investing in both Alphabet 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 Alphabet and Aimia Pref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphabet Inc CDR and Aimia Pref C, you can compare the effects of market volatilities on Alphabet 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 Alphabet with a short position of Aimia Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphabet and Aimia Pref.
Diversification Opportunities for Alphabet and Aimia Pref
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alphabet and Aimia is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Alphabet Inc CDR 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 Alphabet 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 Alphabet Inc CDR 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 Alphabet i.e., Alphabet and Aimia Pref go up and down completely randomly.
Pair Corralation between Alphabet and Aimia Pref
Assuming the 90 days trading horizon Alphabet Inc CDR is expected to generate 1.54 times more return on investment than Aimia Pref. However, Alphabet is 1.54 times more volatile than Aimia Pref C. It trades about 0.31 of its potential returns per unit of risk. Aimia Pref C is currently generating about 0.18 per unit of risk. If you would invest 3,316 in Alphabet Inc CDR on August 13, 2025 and sell it today you would earn a total of 1,429 from holding Alphabet Inc CDR or generate 43.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Alphabet Inc CDR vs. Aimia Pref C
Performance |
| Timeline |
| Alphabet CDR |
| Aimia Pref C |
Alphabet and Aimia Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphabet and Aimia Pref
The main advantage of trading using opposite Alphabet and Aimia Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphabet 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.| Alphabet vs. JPMorgan Chase Co | Alphabet vs. Bank of America | Alphabet vs. BNP Paribas CDR | Alphabet vs. CITIGROUP CDR |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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