Correlation Between AIM ImmunoTech and Addex Therapeutics
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Addex Therapeutics 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 Addex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Addex Therapeutics, you can compare the effects of market volatilities on AIM ImmunoTech and Addex Therapeutics 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 Addex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Addex Therapeutics.
Diversification Opportunities for AIM ImmunoTech and Addex Therapeutics
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AIM and Addex is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Addex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addex Therapeutics 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 Addex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addex Therapeutics has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Addex Therapeutics go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Addex Therapeutics
Considering the 90-day investment horizon AIM ImmunoTech is expected to under-perform the Addex Therapeutics. In addition to that, AIM ImmunoTech is 1.06 times more volatile than Addex Therapeutics. It trades about -0.34 of its total potential returns per unit of risk. Addex Therapeutics is currently generating about 0.07 per unit of volatility. If you would invest 853.00 in Addex Therapeutics on November 28, 2024 and sell it today you would earn a total of 47.00 from holding Addex Therapeutics or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ImmunoTech vs. Addex Therapeutics
Performance |
| Timeline |
| AIM ImmunoTech |
| Addex Therapeutics |
AIM ImmunoTech and Addex Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Addex Therapeutics
The main advantage of trading using opposite AIM ImmunoTech and Addex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Addex Therapeutics 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 Addex Therapeutics will offset losses from the drop in Addex Therapeutics' long position.| AIM ImmunoTech vs. Aptorum Group Ltd | AIM ImmunoTech vs. Biocardia | AIM ImmunoTech vs. Virax Biolabs Group | AIM ImmunoTech vs. Revelation Biosciences |
| Addex Therapeutics vs. Innate Pharma | Addex Therapeutics vs. Aptorum Group Ltd | Addex Therapeutics vs. Dyadic International | Addex Therapeutics vs. Soligenix |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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