Correlation Between AIM ImmunoTech and Made Tech
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Made Tech 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 Made Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Made Tech Group, you can compare the effects of market volatilities on AIM ImmunoTech and Made Tech 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 Made Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Made Tech.
Diversification Opportunities for AIM ImmunoTech and Made Tech
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIM and Made is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Made Tech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Made Tech Group 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 Made Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Made Tech Group has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Made Tech go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Made Tech
Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Made Tech. In addition to that, AIM ImmunoTech is 1.38 times more volatile than Made Tech Group. It trades about -0.06 of its total potential returns per unit of risk. Made Tech Group is currently generating about 0.1 per unit of volatility. If you would invest 1,600 in Made Tech Group on September 1, 2024 and sell it today you would earn a total of 700.00 from holding Made Tech Group or generate 43.75% 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. Made Tech Group
Performance |
| Timeline |
| AIM ImmunoTech |
| Made Tech Group |
AIM ImmunoTech and Made Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Made Tech
The main advantage of trading using opposite AIM ImmunoTech and Made Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Made Tech 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 Made Tech will offset losses from the drop in Made Tech's long position.| AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Diversified Energy |
| Made Tech vs. Ironveld Plc | Made Tech vs. Aberdeen Diversified Income | Made Tech vs. Tata Steel Limited | Made Tech vs. Federal Realty Investment |
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
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |