Correlation Between AIM ImmunoTech and Impax Asset
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Impax Asset 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 Impax Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Impax Asset Management, you can compare the effects of market volatilities on AIM ImmunoTech and Impax Asset 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 Impax Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Impax Asset.
Diversification Opportunities for AIM ImmunoTech and Impax Asset
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AIM and Impax is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Impax Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impax Asset Management 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 Impax Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impax Asset Management has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Impax Asset go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Impax Asset
Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Impax Asset. In addition to that, AIM ImmunoTech is 2.0 times more volatile than Impax Asset Management. It trades about -0.06 of its total potential returns per unit of risk. Impax Asset Management is currently generating about -0.08 per unit of volatility. If you would invest 43,847 in Impax Asset Management on September 3, 2024 and sell it today you would lose (10,497) from holding Impax Asset Management or give up 23.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ImmunoTech vs. Impax Asset Management
Performance |
| Timeline |
| AIM ImmunoTech |
| Impax Asset Management |
AIM ImmunoTech and Impax Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Impax Asset
The main advantage of trading using opposite AIM ImmunoTech and Impax Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Impax Asset 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 Impax Asset will offset losses from the drop in Impax Asset's long position.| AIM ImmunoTech vs. Zoom Video Communications | AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Invesco Health Care |
| Impax Asset vs. Seche Environnement SA | Impax Asset vs. Veolia Environnement VE | Impax Asset vs. Check Point Software | Impax Asset vs. AIM ImmunoTech |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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