Correlation Between AIM ImmunoTech and Henderson High
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Henderson High 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 Henderson High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Henderson High Income, you can compare the effects of market volatilities on AIM ImmunoTech and Henderson High 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 Henderson High. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Henderson High.
Diversification Opportunities for AIM ImmunoTech and Henderson High
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIM and Henderson is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Henderson High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson High Income 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 Henderson High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson High Income has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Henderson High go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Henderson High
Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Henderson High. In addition to that, AIM ImmunoTech is 4.8 times more volatile than Henderson High Income. It trades about -0.03 of its total potential returns per unit of risk. Henderson High Income is currently generating about 0.0 per unit of volatility. If you would invest 17,050 in Henderson High Income on November 28, 2024 and sell it today you would lose (325.00) from holding Henderson High Income or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
AIM ImmunoTech vs. Henderson High Income
Performance |
| Timeline |
| AIM ImmunoTech |
| Henderson High Income |
AIM ImmunoTech and Henderson High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Henderson High
The main advantage of trading using opposite AIM ImmunoTech and Henderson High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Henderson High 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 Henderson High will offset losses from the drop in Henderson High's long position.| AIM ImmunoTech vs. Zoom Video Communications | AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Teradyne |
| Henderson High vs. BE Semiconductor Industries | Henderson High vs. JB Hunt Transport | Henderson High vs. Arcticzymes Technologies ASA | Henderson High vs. Alfa Financial Software |
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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