Correlation Between AIM ImmunoTech and Pfeiffer Vacuum
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Pfeiffer Vacuum 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 Pfeiffer Vacuum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Pfeiffer Vacuum Technology, you can compare the effects of market volatilities on AIM ImmunoTech and Pfeiffer Vacuum 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 Pfeiffer Vacuum. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Pfeiffer Vacuum.
Diversification Opportunities for AIM ImmunoTech and Pfeiffer Vacuum
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AIM and Pfeiffer is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Pfeiffer Vacuum Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfeiffer Vacuum Tech 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 Pfeiffer Vacuum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfeiffer Vacuum Tech has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Pfeiffer Vacuum go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Pfeiffer Vacuum
Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Pfeiffer Vacuum. In addition to that, AIM ImmunoTech is 9.14 times more volatile than Pfeiffer Vacuum Technology. It trades about -0.06 of its total potential returns per unit of risk. Pfeiffer Vacuum Technology is currently generating about 0.04 per unit of volatility. If you would invest 15,105 in Pfeiffer Vacuum Technology on September 1, 2024 and sell it today you would earn a total of 385.00 from holding Pfeiffer Vacuum Technology or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ImmunoTech vs. Pfeiffer Vacuum Technology
Performance |
| Timeline |
| AIM ImmunoTech |
| Pfeiffer Vacuum Tech |
AIM ImmunoTech and Pfeiffer Vacuum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Pfeiffer Vacuum
The main advantage of trading using opposite AIM ImmunoTech and Pfeiffer Vacuum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Pfeiffer Vacuum 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 Pfeiffer Vacuum will offset losses from the drop in Pfeiffer Vacuum's long position.| AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Diversified Energy |
| Pfeiffer Vacuum vs. Uniper SE | Pfeiffer Vacuum vs. Mulberry Group PLC | Pfeiffer Vacuum vs. London Security Plc | Pfeiffer Vacuum vs. Triad Group PLC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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