Correlation Between AIM ETF and Dimensional Targeted

Can any of the company-specific risk be diversified away by investing in both AIM ETF and Dimensional Targeted 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 AIM ETF and Dimensional Targeted into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AIM ETF Products and Dimensional Targeted Value, you can compare the effects of market volatilities on AIM ETF and Dimensional Targeted 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 AIM ETF with a short position of Dimensional Targeted. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Dimensional Targeted.

Diversification Opportunities for AIM ETF and Dimensional Targeted

0.48

Correlation Coefficient

AIM ETF  Dimensional Targeted

Very weak diversification

The 3 months correlation between AIM and Dimensional is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Dimensional Targeted Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional Targeted and AIM ETF 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 AIM ETF Products are associated (or correlated) with Dimensional Targeted. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional Targeted has no effect on the direction of AIM ETF i.e., AIM ETF and Dimensional Targeted go up and down completely randomly.

Pair Corralation between AIM ETF and Dimensional Targeted

Given the investment horizon of 90 days AIM ETF is expected to generate 3.1 times less return on investment than Dimensional Targeted. But when comparing it to its historical volatility, AIM ETF Products is 5.66 times less risky than Dimensional Targeted. It trades about 0.2 of its potential returns per unit of risk. Dimensional Targeted Value is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  5,681  in Dimensional Targeted Value on May 24, 2025 and sell it today you would earn a total of  194.00  from holding Dimensional Targeted Value or generate 3.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

AIM ETF Products  vs.  Dimensional Targeted Value

AIM ETF Products

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AIM ETF Products are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, AIM ETF is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Dimensional Targeted

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Dimensional Targeted Value are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Dimensional Targeted may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with AIM ETF and Dimensional Targeted

The main advantage of trading using opposite AIM ETF and Dimensional Targeted positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, Dimensional Targeted 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 Dimensional Targeted will offset losses from the drop in Dimensional Targeted's long position.

The idea behind AIM ETF Products and Dimensional Targeted Value 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.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.