Correlation Between AIM ImmunoTech and Axfood AB
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Axfood AB 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 Axfood AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Axfood AB, you can compare the effects of market volatilities on AIM ImmunoTech and Axfood AB 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 Axfood AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Axfood AB.
Diversification Opportunities for AIM ImmunoTech and Axfood AB
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AIM and Axfood is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Axfood AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axfood AB 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 Axfood AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axfood AB has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Axfood AB go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Axfood AB
Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Axfood AB. In addition to that, AIM ImmunoTech is 3.41 times more volatile than Axfood AB. It trades about -0.02 of its total potential returns per unit of risk. Axfood AB is currently generating about 0.01 per unit of volatility. If you would invest 23,087 in Axfood AB on September 2, 2024 and sell it today you would earn a total of 513.00 from holding Axfood AB or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
AIM ImmunoTech vs. Axfood AB
Performance |
| Timeline |
| AIM ImmunoTech |
| Axfood AB |
AIM ImmunoTech and Axfood AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Axfood AB
The main advantage of trading using opposite AIM ImmunoTech and Axfood AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Axfood AB 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 Axfood AB will offset losses from the drop in Axfood AB's long position.| AIM ImmunoTech vs. Omega Healthcare Investors | AIM ImmunoTech vs. Cellnex Telecom SA | AIM ImmunoTech vs. Target Healthcare REIT | AIM ImmunoTech vs. Planet Fitness Cl |
| Axfood AB vs. Atalaya Mining | Axfood AB vs. Eastinco Mining Exploration | Axfood AB vs. Invesco Physical Silver | Axfood AB vs. Anglesey Mining |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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