Correlation Between Tax-exempt High and Aim Counselor
Can any of the company-specific risk be diversified away by investing in both Tax-exempt High and Aim Counselor 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 Tax-exempt High and Aim Counselor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tax Exempt High Yield and Aim Counselor Series, you can compare the effects of market volatilities on Tax-exempt High and Aim Counselor 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 Tax-exempt High with a short position of Aim Counselor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tax-exempt High and Aim Counselor.
Diversification Opportunities for Tax-exempt High and Aim Counselor
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tax-exempt and Aim is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tax Exempt High Yield and Aim Counselor Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Counselor Series and Tax-exempt High 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 Tax Exempt High Yield are associated (or correlated) with Aim Counselor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Counselor Series has no effect on the direction of Tax-exempt High i.e., Tax-exempt High and Aim Counselor go up and down completely randomly.
Pair Corralation between Tax-exempt High and Aim Counselor
Assuming the 90 days horizon Tax Exempt High Yield is expected to generate 0.85 times more return on investment than Aim Counselor. However, Tax Exempt High Yield is 1.18 times less risky than Aim Counselor. It trades about 0.42 of its potential returns per unit of risk. Aim Counselor Series is currently generating about 0.19 per unit of risk. If you would invest 929.00 in Tax Exempt High Yield on August 18, 2025 and sell it today you would earn a total of 45.00 from holding Tax Exempt High Yield or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tax Exempt High Yield vs. Aim Counselor Series
Performance |
| Timeline |
| Tax Exempt High |
| Aim Counselor Series |
Tax-exempt High and Aim Counselor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tax-exempt High and Aim Counselor
The main advantage of trading using opposite Tax-exempt High and Aim Counselor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tax-exempt High position performs unexpectedly, Aim Counselor 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 Counselor will offset losses from the drop in Aim Counselor's long position.| Tax-exempt High vs. Hartford Healthcare Hls | Tax-exempt High vs. Invesco Global Health | Tax-exempt High vs. Putnam Global Health | Tax-exempt High vs. Health Care Ultrasector |
| Aim Counselor vs. Invesco Municipal Income | Aim Counselor vs. Invesco Municipal Income | Aim Counselor vs. Invesco Municipal Income | Aim Counselor vs. Invesco High Yield |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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