Correlation Between AIM ImmunoTech and Zoom Video
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Zoom Video 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 ImmunoTech and Zoom Video into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Zoom Video Communications, you can compare the effects of market volatilities on AIM ImmunoTech and Zoom Video 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 ImmunoTech with a short position of Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Zoom Video.
Diversification Opportunities for AIM ImmunoTech and Zoom Video
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AIM and Zoom is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications and AIM ImmunoTech 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 ImmunoTech are associated (or correlated) with Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Zoom Video go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Zoom Video
Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Zoom Video. In addition to that, AIM ImmunoTech is 2.2 times more volatile than Zoom Video Communications. It trades about -0.06 of its total potential returns per unit of risk. Zoom Video Communications is currently generating about 0.12 per unit of volatility. If you would invest 6,183 in Zoom Video Communications on September 1, 2024 and sell it today you would earn a total of 2,181 from holding Zoom Video Communications or generate 35.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
AIM ImmunoTech vs. Zoom Video Communications
Performance |
| Timeline |
| AIM ImmunoTech |
| Zoom Video Communications |
AIM ImmunoTech and Zoom Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Zoom Video
The main advantage of trading using opposite AIM ImmunoTech and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Zoom Video 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 Zoom Video will offset losses from the drop in Zoom Video's long position.| AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Diversified Energy |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |