Correlation Between VEF AB and Aimia
Can any of the company-specific risk be diversified away by investing in both VEF AB and Aimia 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 VEF AB and Aimia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VEF AB and Aimia Inc, you can compare the effects of market volatilities on VEF AB and Aimia 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 VEF AB with a short position of Aimia. Check out your portfolio center. Please also check ongoing floating volatility patterns of VEF AB and Aimia.
Diversification Opportunities for VEF AB and Aimia
Pay attention - limited upside
The 3 months correlation between VEF and Aimia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VEF AB and Aimia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aimia Inc and VEF AB 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 VEF AB are associated (or correlated) with Aimia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aimia Inc has no effect on the direction of VEF AB i.e., VEF AB and Aimia go up and down completely randomly.
Pair Corralation between VEF AB and Aimia
If you would invest 20.00 in VEF AB on August 26, 2025 and sell it today you would earn a total of 0.00 from holding VEF AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
VEF AB vs. Aimia Inc
Performance |
| Timeline |
| VEF AB |
| Aimia Inc |
Risk-Adjusted Performance
Weakest
Weak | Strong |
VEF AB and Aimia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VEF AB and Aimia
The main advantage of trading using opposite VEF AB and Aimia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VEF AB position performs unexpectedly, Aimia 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 will offset losses from the drop in Aimia's long position.The idea behind VEF AB and Aimia Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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