Correlation Between AIM ImmunoTech and Armata Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Armata Pharmaceuticals 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 Armata Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Armata Pharmaceuticals, you can compare the effects of market volatilities on AIM ImmunoTech and Armata Pharmaceuticals 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 Armata Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Armata Pharmaceuticals.
Diversification Opportunities for AIM ImmunoTech and Armata Pharmaceuticals
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AIM and Armata is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Armata Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armata Pharmaceuticals 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 Armata Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armata Pharmaceuticals has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Armata Pharmaceuticals go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Armata Pharmaceuticals
Considering the 90-day investment horizon AIM ImmunoTech is expected to under-perform the Armata Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, AIM ImmunoTech is 1.25 times less risky than Armata Pharmaceuticals. The stock trades about -0.01 of its potential returns per unit of risk. The Armata Pharmaceuticals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 145.00 in Armata Pharmaceuticals on September 2, 2024 and sell it today you would earn a total of 85.00 from holding Armata Pharmaceuticals or generate 58.62% 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. Armata Pharmaceuticals
Performance |
| Timeline |
| AIM ImmunoTech |
| Armata Pharmaceuticals |
AIM ImmunoTech and Armata Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Armata Pharmaceuticals
The main advantage of trading using opposite AIM ImmunoTech and Armata Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Armata Pharmaceuticals 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 Armata Pharmaceuticals will offset losses from the drop in Armata Pharmaceuticals' long position.| AIM ImmunoTech vs. Aptorum Group Ltd | AIM ImmunoTech vs. Biocardia | AIM ImmunoTech vs. Virax Biolabs Group | AIM ImmunoTech vs. Revelation Biosciences |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |