Correlation Between AIM ImmunoTech and Celebrus Technologies
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Celebrus 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 Celebrus 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 Celebrus Technologies plc, you can compare the effects of market volatilities on AIM ImmunoTech and Celebrus 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 Celebrus Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Celebrus Technologies.
Diversification Opportunities for AIM ImmunoTech and Celebrus Technologies
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AIM and Celebrus is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Celebrus Technologies plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celebrus Technologies plc 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 Celebrus Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celebrus Technologies plc has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Celebrus Technologies go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Celebrus Technologies
Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Celebrus Technologies. In addition to that, AIM ImmunoTech is 2.61 times more volatile than Celebrus Technologies plc. It trades about -0.06 of its total potential returns per unit of risk. Celebrus Technologies plc is currently generating about 0.19 per unit of volatility. If you would invest 27,500 in Celebrus Technologies plc on September 1, 2024 and sell it today you would earn a total of 2,750 from holding Celebrus Technologies plc or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ImmunoTech vs. Celebrus Technologies plc
Performance |
| Timeline |
| AIM ImmunoTech |
| Celebrus Technologies plc |
AIM ImmunoTech and Celebrus Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Celebrus Technologies
The main advantage of trading using opposite AIM ImmunoTech and Celebrus Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Celebrus 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 Celebrus Technologies will offset losses from the drop in Celebrus Technologies' long position.| AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Diversified Energy |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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