Correlation Between AIM ImmunoTech and Zanaga Iron
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Zanaga Iron 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 Zanaga Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Zanaga Iron Ore, you can compare the effects of market volatilities on AIM ImmunoTech and Zanaga Iron 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 Zanaga Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Zanaga Iron.
Diversification Opportunities for AIM ImmunoTech and Zanaga Iron
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIM and Zanaga is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Zanaga Iron Ore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zanaga Iron Ore 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 Zanaga Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zanaga Iron Ore has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Zanaga Iron go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Zanaga Iron
Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Zanaga Iron. In addition to that, AIM ImmunoTech is 1.68 times more volatile than Zanaga Iron Ore. It trades about -0.21 of its total potential returns per unit of risk. Zanaga Iron Ore is currently generating about 0.07 per unit of volatility. If you would invest 799.00 in Zanaga Iron Ore on November 28, 2024 and sell it today you would earn a total of 42.00 from holding Zanaga Iron Ore or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AIM ImmunoTech vs. Zanaga Iron Ore
Performance |
| Timeline |
| AIM ImmunoTech |
| Zanaga Iron Ore |
AIM ImmunoTech and Zanaga Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Zanaga Iron
The main advantage of trading using opposite AIM ImmunoTech and Zanaga Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Zanaga Iron 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 Zanaga Iron will offset losses from the drop in Zanaga Iron's long position.| AIM ImmunoTech vs. Martin Marietta Materials | AIM ImmunoTech vs. Games Workshop Group | AIM ImmunoTech vs. MoneysupermarketCom Group PLC | AIM ImmunoTech vs. Fevertree Drinks Plc |
| Zanaga Iron vs. JD Sports Fashion | Zanaga Iron vs. Sabre Insurance Group | Zanaga Iron vs. Ubisoft Entertainment | Zanaga Iron vs. Centaur Media |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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