Correlation Between Life Banc and Aimia Pref
Can any of the company-specific risk be diversified away by investing in both Life Banc 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 Life Banc and Aimia Pref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Banc Split and Aimia Pref C, you can compare the effects of market volatilities on Life Banc 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 Life Banc with a short position of Aimia Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Banc and Aimia Pref.
Diversification Opportunities for Life Banc and Aimia Pref
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Life and Aimia is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Life Banc Split 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 Life Banc 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 Life Banc Split 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 Life Banc i.e., Life Banc and Aimia Pref go up and down completely randomly.
Pair Corralation between Life Banc and Aimia Pref
Assuming the 90 days trading horizon Life Banc Split is expected to generate 0.92 times more return on investment than Aimia Pref. However, Life Banc Split is 1.08 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 0.18 per unit of risk. If you would invest 854.00 in Life Banc Split on August 13, 2025 and sell it today you would earn a total of 244.00 from holding Life Banc Split or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Life Banc Split vs. Aimia Pref C
Performance |
| Timeline |
| Life Banc Split |
| Aimia Pref C |
Life Banc and Aimia Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Banc and Aimia Pref
The main advantage of trading using opposite Life Banc and Aimia Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Banc 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.| Life Banc vs. Canadian Banc Corp | Life Banc vs. North American Financial | Life Banc vs. Dividend Growth Split | Life Banc vs. Brompton Split Banc |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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