Correlation Between AIM ImmunoTech and Sunny Optical
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Sunny Optical 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 Sunny Optical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Sunny Optical Technology, you can compare the effects of market volatilities on AIM ImmunoTech and Sunny Optical 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 Sunny Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Sunny Optical.
Diversification Opportunities for AIM ImmunoTech and Sunny Optical
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AIM and Sunny is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Sunny Optical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Optical Technology 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 Sunny Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Optical Technology has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Sunny Optical go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Sunny Optical
Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Sunny Optical. In addition to that, AIM ImmunoTech is 1.18 times more volatile than Sunny Optical Technology. It trades about -0.05 of its total potential returns per unit of risk. Sunny Optical Technology is currently generating about 0.02 per unit of volatility. If you would invest 6,736 in Sunny Optical Technology on September 4, 2024 and sell it today you would lose (211.00) from holding Sunny Optical Technology or give up 3.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.39% |
| Values | Daily Returns |
AIM ImmunoTech vs. Sunny Optical Technology
Performance |
| Timeline |
| AIM ImmunoTech |
| Sunny Optical Technology |
AIM ImmunoTech and Sunny Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Sunny Optical
The main advantage of trading using opposite AIM ImmunoTech and Sunny Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Sunny Optical 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 Sunny Optical will offset losses from the drop in Sunny Optical'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 |
| Sunny Optical vs. Impax Asset Management | Sunny Optical vs. Cornish Metals | Sunny Optical vs. Litigation Capital Management | Sunny Optical vs. Ecofin Global Utilities |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |