Correlation Between AIM ImmunoTech and G5 Entertainment
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and G5 Entertainment 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 G5 Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and G5 Entertainment AB, you can compare the effects of market volatilities on AIM ImmunoTech and G5 Entertainment 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 G5 Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and G5 Entertainment.
Diversification Opportunities for AIM ImmunoTech and G5 Entertainment
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIM and 0QUS is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and G5 Entertainment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G5 Entertainment 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 G5 Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G5 Entertainment has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and G5 Entertainment go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and G5 Entertainment
Assuming the 90 days trading horizon AIM ImmunoTech is expected to generate 2.29 times more return on investment than G5 Entertainment. However, AIM ImmunoTech is 2.29 times more volatile than G5 Entertainment AB. It trades about -0.02 of its potential returns per unit of risk. G5 Entertainment AB is currently generating about -0.06 per unit of risk. If you would invest 50.00 in AIM ImmunoTech on September 4, 2024 and sell it today you would lose (28.00) from holding AIM ImmunoTech or give up 56.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.94% |
| Values | Daily Returns |
AIM ImmunoTech vs. G5 Entertainment AB
Performance |
| Timeline |
| AIM ImmunoTech |
| G5 Entertainment |
AIM ImmunoTech and G5 Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and G5 Entertainment
The main advantage of trading using opposite AIM ImmunoTech and G5 Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, G5 Entertainment 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 G5 Entertainment will offset losses from the drop in G5 Entertainment's long position.| AIM ImmunoTech vs. Veolia Environnement VE | AIM ImmunoTech vs. Infrastrutture Wireless Italiane | AIM ImmunoTech vs. PureTech Health plc | AIM ImmunoTech vs. Seche Environnement SA |
| G5 Entertainment vs. United States Steel | G5 Entertainment vs. Gaztransport et Technigaz | G5 Entertainment vs. Baker Steel Resources | G5 Entertainment vs. AMG Advanced Metallurgical |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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