Correlation Between AIM ImmunoTech and Enbridge
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Enbridge 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 Enbridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Enbridge, you can compare the effects of market volatilities on AIM ImmunoTech and Enbridge 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 Enbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Enbridge.
Diversification Opportunities for AIM ImmunoTech and Enbridge
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AIM and Enbridge is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Enbridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge 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 Enbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Enbridge go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Enbridge
Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Enbridge. In addition to that, AIM ImmunoTech is 4.74 times more volatile than Enbridge. It trades about -0.06 of its total potential returns per unit of risk. Enbridge is currently generating about 0.29 per unit of volatility. If you would invest 4,803 in Enbridge on September 3, 2024 and sell it today you would earn a total of 1,197 from holding Enbridge or generate 24.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 59.38% |
| Values | Daily Returns |
AIM ImmunoTech vs. Enbridge
Performance |
| Timeline |
| AIM ImmunoTech |
| Enbridge |
AIM ImmunoTech and Enbridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Enbridge
The main advantage of trading using opposite AIM ImmunoTech and Enbridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Enbridge 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 Enbridge will offset losses from the drop in Enbridge's long position.| AIM ImmunoTech vs. Zoom Video Communications | AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Invesco Health Care |
| Enbridge vs. Flow Traders NV | Enbridge vs. Grieg Seafood | Enbridge vs. Elmos Semiconductor SE | Enbridge vs. Ebro Foods |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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