Correlation Between AIM ImmunoTech and Target Healthcare
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Target Healthcare 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 Target Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Target Healthcare REIT, you can compare the effects of market volatilities on AIM ImmunoTech and Target Healthcare 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 Target Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Target Healthcare.
Diversification Opportunities for AIM ImmunoTech and Target Healthcare
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between AIM and Target is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Target Healthcare REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target Healthcare REIT 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 Target Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target Healthcare REIT has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Target Healthcare go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Target Healthcare
Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Target Healthcare. In addition to that, AIM ImmunoTech is 2.36 times more volatile than Target Healthcare REIT. It trades about 0.0 of its total potential returns per unit of risk. Target Healthcare REIT is currently generating about 0.03 per unit of volatility. If you would invest 6,879 in Target Healthcare REIT on September 3, 2024 and sell it today you would earn a total of 1,521 from holding Target Healthcare REIT or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.0% |
| Values | Daily Returns |
AIM ImmunoTech vs. Target Healthcare REIT
Performance |
| Timeline |
| AIM ImmunoTech |
| Target Healthcare REIT |
AIM ImmunoTech and Target Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Target Healthcare
The main advantage of trading using opposite AIM ImmunoTech and Target Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Target Healthcare 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 Target Healthcare will offset losses from the drop in Target Healthcare'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 |
| Target Healthcare vs. Made Tech Group | Target Healthcare vs. Allianz Technology Trust | Target Healthcare vs. AIM ImmunoTech | Target Healthcare vs. TechnipFMC 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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