Correlation Between AIM Industrial and Bhiraj Office

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

By analyzing existing cross correlation between AIM Industrial Growth and Bhiraj Office Leasehold, you can compare the effects of market volatilities on AIM Industrial and Bhiraj Office 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 Industrial with a short position of Bhiraj Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM Industrial and Bhiraj Office.

Diversification Opportunities for AIM Industrial and Bhiraj Office

0.28

Correlation Coefficient

AIM Industrial  Bhiraj Office

Modest diversification

The 3 months correlation between AIM and Bhiraj is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding AIM Industrial Growth and Bhiraj Office Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bhiraj Office Leasehold and AIM Industrial 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 Industrial Growth are associated (or correlated) with Bhiraj Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bhiraj Office Leasehold has no effect on the direction of AIM Industrial i.e., AIM Industrial and Bhiraj Office go up and down completely randomly.

Pair Corralation between AIM Industrial and Bhiraj Office

Assuming the 90 days trading horizon AIM Industrial is expected to generate 4.97 times less return on investment than Bhiraj Office. But when comparing it to its historical volatility, AIM Industrial Growth is 2.24 times less risky than Bhiraj Office. It trades about 0.04 of its potential returns per unit of risk. Bhiraj Office Leasehold is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  457.00  in Bhiraj Office Leasehold on April 24, 2025 and sell it today you would earn a total of  27.00  from holding Bhiraj Office Leasehold or generate 5.91% return on investment over 90 days.

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

AIM Industrial Growth  vs.  Bhiraj Office Leasehold

AIM Industrial Growth

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AIM Industrial Growth are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong primary indicators, AIM Industrial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bhiraj Office Leasehold

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bhiraj Office Leasehold are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Bhiraj Office may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with AIM Industrial and Bhiraj Office

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

The idea behind AIM Industrial Growth and Bhiraj Office Leasehold 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.