Correlation Between Overstock and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both Overstock 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 Overstock and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Overstock and AIM ImmunoTech, you can compare the effects of market volatilities on Overstock 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 Overstock with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Overstock and AIM ImmunoTech.
Diversification Opportunities for Overstock and AIM ImmunoTech
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Overstock and AIM is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Overstock and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and Overstock 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 Overstock 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 Overstock i.e., Overstock and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between Overstock and AIM ImmunoTech
Assuming the 90 days trading horizon Overstock is expected to generate 1.18 times more return on investment than AIM ImmunoTech. However, Overstock is 1.18 times more volatile than AIM ImmunoTech. It trades about 0.01 of its potential returns per unit of risk. AIM ImmunoTech is currently generating about -0.07 per unit of risk. If you would invest 953.00 in Overstock on November 2, 2024 and sell it today you would lose (120.00) from holding Overstock or give up 12.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.07% |
| Values | Daily Returns |
Overstock vs. AIM ImmunoTech
Performance |
| Timeline |
| Overstock |
| AIM ImmunoTech |
Overstock and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Overstock and AIM ImmunoTech
The main advantage of trading using opposite Overstock and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Overstock 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.| Overstock vs. Ryanair Holdings plc | Overstock vs. Austevoll Seafood ASA | Overstock vs. Dairy Farm International | Overstock vs. Costco Wholesale Corp |
| AIM ImmunoTech vs. Charter Communications Cl | AIM ImmunoTech vs. Porvair plc | AIM ImmunoTech vs. Gamma Communications PLC | AIM ImmunoTech vs. Spirent Communications 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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