Correlation Between Aimia Srs and Linea Directa

Can any of the company-specific risk be diversified away by investing in both Aimia Srs and Linea Directa 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 Aimia Srs and Linea Directa into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aimia Srs 1 and Linea Directa Aseguradora, you can compare the effects of market volatilities on Aimia Srs and Linea Directa 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 Aimia Srs with a short position of Linea Directa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aimia Srs and Linea Directa.

Diversification Opportunities for Aimia Srs and Linea Directa

0.43

Correlation Coefficient

Aimia Srs  Linea Directa

Very weak diversification

The 3 months correlation between Aimia and Linea is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Aimia Srs 1 and Linea Directa Aseguradora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linea Directa Aseguradora and Aimia Srs 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 Aimia Srs 1 are associated (or correlated) with Linea Directa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linea Directa Aseguradora has no effect on the direction of Aimia Srs i.e., Aimia Srs and Linea Directa go up and down completely randomly.

Pair Corralation between Aimia Srs and Linea Directa

Assuming the 90 days trading horizon Aimia Srs 1 is expected to generate 1.01 times more return on investment than Linea Directa. However, Aimia Srs is 1.01 times more volatile than Linea Directa Aseguradora. It trades about 0.17 of its potential returns per unit of risk. Linea Directa Aseguradora is currently generating about 0.16 per unit of risk. If you would invest  1,662  in Aimia Srs 1 on April 21, 2025 and sell it today you would earn a total of  298.00  from holding Aimia Srs 1 or generate 17.93% return on investment over 90 days.

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

Aimia Srs 1  vs.  Linea Directa Aseguradora

Aimia Srs 1

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aimia Srs 1 are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Aimia Srs sustained solid returns over the last few months and may actually be approaching a breakup point.

Linea Directa Aseguradora

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Linea Directa Aseguradora are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Linea Directa exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aimia Srs and Linea Directa

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

The idea behind Aimia Srs 1 and Linea Directa Aseguradora 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.