Correlation Between AIM ImmunoTech and Check Point
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Check Point 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 Check Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Check Point Software, you can compare the effects of market volatilities on AIM ImmunoTech and Check Point 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 Check Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Check Point.
Diversification Opportunities for AIM ImmunoTech and Check Point
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AIM and Check is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Check Point Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Point Software 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 Check Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Point Software has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Check Point go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Check Point
Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Check Point. In addition to that, AIM ImmunoTech is 2.85 times more volatile than Check Point Software. It trades about -0.05 of its total potential returns per unit of risk. Check Point Software is currently generating about 0.06 per unit of volatility. If you would invest 14,677 in Check Point Software on September 4, 2024 and sell it today you would earn a total of 3,525 from holding Check Point Software or generate 24.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
AIM ImmunoTech vs. Check Point Software
Performance |
| Timeline |
| AIM ImmunoTech |
| Check Point Software |
AIM ImmunoTech and Check Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Check Point
The main advantage of trading using opposite AIM ImmunoTech and Check Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Check Point 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 Check Point will offset losses from the drop in Check Point'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 |
| Check Point vs. Toyota Motor Corp | Check Point vs. SoftBank Group Corp | Check Point vs. OTP Bank Nyrt | Check Point vs. Las Vegas Sands |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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