Correlation Between AIM ImmunoTech and Lords Grp
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Lords Grp 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 Lords Grp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Lords Grp Trading, you can compare the effects of market volatilities on AIM ImmunoTech and Lords Grp 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 Lords Grp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Lords Grp.
Diversification Opportunities for AIM ImmunoTech and Lords Grp
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AIM and Lords is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Lords Grp Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lords Grp Trading 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 Lords Grp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lords Grp Trading has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Lords Grp go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Lords Grp
Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Lords Grp. In addition to that, AIM ImmunoTech is 1.92 times more volatile than Lords Grp Trading. It trades about -0.05 of its total potential returns per unit of risk. Lords Grp Trading is currently generating about -0.05 per unit of volatility. If you would invest 5,062 in Lords Grp Trading on September 4, 2024 and sell it today you would lose (1,442) from holding Lords Grp Trading or give up 28.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
AIM ImmunoTech vs. Lords Grp Trading
Performance |
| Timeline |
| AIM ImmunoTech |
| Lords Grp Trading |
AIM ImmunoTech and Lords Grp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Lords Grp
The main advantage of trading using opposite AIM ImmunoTech and Lords Grp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Lords Grp 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 Lords Grp will offset losses from the drop in Lords Grp'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 |
| Lords Grp vs. Scandinavian Tobacco Group | Lords Grp vs. Charter Communications Cl | Lords Grp vs. Schroders Investment Trusts | Lords Grp vs. Playtech Plc |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |