Correlation Between AIM ETF and Fundamental Income

Can any of the company-specific risk be diversified away by investing in both AIM ETF and Fundamental Income 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 Fundamental Income 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 Fundamental Income Net, you can compare the effects of market volatilities on AIM ETF and Fundamental Income 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 Fundamental Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Fundamental Income.

Diversification Opportunities for AIM ETF and Fundamental Income

0.71

Correlation Coefficient

AIM ETF  Fundamental Income

Poor diversification

The 3 months correlation between AIM and Fundamental is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and Fundamental Income Net in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Income Net 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 Fundamental Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Income Net has no effect on the direction of AIM ETF i.e., AIM ETF and Fundamental Income go up and down completely randomly.

Pair Corralation between AIM ETF and Fundamental Income

Given the investment horizon of 90 days AIM ETF Products is expected to generate 0.31 times more return on investment than Fundamental Income. However, AIM ETF Products is 3.27 times less risky than Fundamental Income. It trades about 0.37 of its potential returns per unit of risk. Fundamental Income Net is currently generating about 0.06 per unit of risk. If you would invest  2,625  in AIM ETF Products on April 29, 2025 and sell it today you would earn a total of  153.00  from holding AIM ETF Products or generate 5.83% return on investment over 90 days.

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

AIM ETF Products  vs.  Fundamental Income Net

AIM ETF Products

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in AIM ETF Products are ranked lower than 28 (%) 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.

Fundamental Income Net

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fundamental Income Net are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Fundamental Income is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with AIM ETF and Fundamental Income

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

The idea behind AIM ETF Products and Fundamental Income Net 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 CEOs Directory module to screen CEOs from public companies around the world.