Correlation Between AIM ImmunoTech and Schweiter Technologies
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Schweiter Technologies 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 Schweiter Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Schweiter Technologies AG, you can compare the effects of market volatilities on AIM ImmunoTech and Schweiter Technologies 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 Schweiter Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Schweiter Technologies.
Diversification Opportunities for AIM ImmunoTech and Schweiter Technologies
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between AIM and Schweiter is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Schweiter Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweiter Technologies 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 Schweiter Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweiter Technologies has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Schweiter Technologies go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Schweiter Technologies
Assuming the 90 days trading horizon AIM ImmunoTech is expected to generate 2.82 times more return on investment than Schweiter Technologies. However, AIM ImmunoTech is 2.82 times more volatile than Schweiter Technologies AG. It trades about 0.0 of its potential returns per unit of risk. Schweiter Technologies AG is currently generating about -0.06 per unit of risk. If you would invest 47.00 in AIM ImmunoTech on September 3, 2024 and sell it today you would lose (24.00) from holding AIM ImmunoTech or give up 51.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
AIM ImmunoTech vs. Schweiter Technologies AG
Performance |
| Timeline |
| AIM ImmunoTech |
| Schweiter Technologies |
AIM ImmunoTech and Schweiter Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Schweiter Technologies
The main advantage of trading using opposite AIM ImmunoTech and Schweiter Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Schweiter Technologies 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 Schweiter Technologies will offset losses from the drop in Schweiter Technologies' long position.| AIM ImmunoTech vs. Zoom Video Communications | AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Invesco Health Care |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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