Correlation Between DXC Technology and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both DXC Technology and AIM ImmunoTech 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 DXC Technology and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and AIM ImmunoTech, you can compare the effects of market volatilities on DXC Technology and AIM ImmunoTech 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 DXC Technology with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and AIM ImmunoTech.
Diversification Opportunities for DXC Technology and AIM ImmunoTech
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DXC and AIM is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and DXC Technology 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 DXC Technology Co are associated (or correlated) with AIM ImmunoTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM ImmunoTech has no effect on the direction of DXC Technology i.e., DXC Technology and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between DXC Technology and AIM ImmunoTech
Assuming the 90 days trading horizon DXC Technology Co is expected to generate 0.52 times more return on investment than AIM ImmunoTech. However, DXC Technology Co is 1.92 times less risky than AIM ImmunoTech. It trades about 0.16 of its potential returns per unit of risk. AIM ImmunoTech is currently generating about -0.06 per unit of risk. If you would invest 2,026 in DXC Technology Co on September 1, 2024 and sell it today you would earn a total of 215.00 from holding DXC Technology Co or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DXC Technology Co vs. AIM ImmunoTech
Performance |
| Timeline |
| DXC Technology |
| AIM ImmunoTech |
DXC Technology and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and AIM ImmunoTech
The main advantage of trading using opposite DXC Technology and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, AIM ImmunoTech 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 AIM ImmunoTech will offset losses from the drop in AIM ImmunoTech's long position.| DXC Technology vs. Orient Telecoms | DXC Technology vs. Future Metals NL | DXC Technology vs. AMG Advanced Metallurgical | DXC Technology vs. Sovereign Metals |
| AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Diversified Energy |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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