Correlation Between AIM ImmunoTech and Thor Mining
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Thor Mining 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 Thor Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Thor Mining PLC, you can compare the effects of market volatilities on AIM ImmunoTech and Thor Mining 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 Thor Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Thor Mining.
Diversification Opportunities for AIM ImmunoTech and Thor Mining
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AIM and Thor is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Thor Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Mining 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 Thor Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Mining PLC has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Thor Mining go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Thor Mining
Assuming the 90 days trading horizon AIM ImmunoTech is expected to generate 1.71 times more return on investment than Thor Mining. However, AIM ImmunoTech is 1.71 times more volatile than Thor Mining PLC. It trades about -0.06 of its potential returns per unit of risk. Thor Mining PLC is currently generating about -0.17 per unit of risk. If you would invest 26.00 in AIM ImmunoTech on September 1, 2024 and sell it today you would lose (3.00) from holding AIM ImmunoTech or give up 11.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ImmunoTech vs. Thor Mining PLC
Performance |
| Timeline |
| AIM ImmunoTech |
| Thor Mining PLC |
AIM ImmunoTech and Thor Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Thor Mining
The main advantage of trading using opposite AIM ImmunoTech and Thor Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Thor Mining 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 Thor Mining will offset losses from the drop in Thor Mining's long position.| AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Diversified Energy |
| Thor Mining vs. Givaudan SA | Thor Mining vs. Antofagasta PLC | Thor Mining vs. Centamin PLC | Thor Mining vs. Atalaya Mining |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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