Correlation Between IShares Nasdaq and AIM ETF
Can any of the company-specific risk be diversified away by investing in both IShares Nasdaq 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 IShares Nasdaq and AIM ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Nasdaq Top and AIM ETF Products, you can compare the effects of market volatilities on IShares Nasdaq 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 IShares Nasdaq with a short position of AIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Nasdaq and AIM ETF.
Diversification Opportunities for IShares Nasdaq and AIM ETF
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and AIM is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding iShares Nasdaq Top 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 IShares Nasdaq 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 iShares Nasdaq Top 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 IShares Nasdaq i.e., IShares Nasdaq and AIM ETF go up and down completely randomly.
Pair Corralation between IShares Nasdaq and AIM ETF
Given the investment horizon of 90 days iShares Nasdaq Top is expected to generate 3.99 times more return on investment than AIM ETF. However, IShares Nasdaq is 3.99 times more volatile than AIM ETF Products. It trades about 0.09 of its potential returns per unit of risk. AIM ETF Products is currently generating about 0.11 per unit of risk. If you would invest 3,002 in iShares Nasdaq Top on August 16, 2025 and sell it today you would earn a total of 188.00 from holding iShares Nasdaq Top or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Nasdaq Top vs. AIM ETF Products
Performance |
| Timeline |
| iShares Nasdaq Top |
| AIM ETF Products |
IShares Nasdaq and AIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Nasdaq and AIM ETF
The main advantage of trading using opposite IShares Nasdaq and AIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Nasdaq 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.| IShares Nasdaq vs. EGSHARES BLUE CHIP | IShares Nasdaq vs. First Trust Exchange Traded | IShares Nasdaq vs. OShares Global Internet | IShares Nasdaq vs. First Trust International |
| AIM ETF vs. AllianzIM Large Cap | AIM ETF vs. AIM ETF Products | AIM ETF vs. Innovator Etfs Trust | AIM ETF vs. First Trust Exchange |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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