Correlation Between AIM ImmunoTech and Biocardia
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Biocardia 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 Biocardia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and Biocardia, you can compare the effects of market volatilities on AIM ImmunoTech and Biocardia 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 Biocardia. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Biocardia.
Diversification Opportunities for AIM ImmunoTech and Biocardia
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIM and Biocardia is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Biocardia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biocardia 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 Biocardia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biocardia has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Biocardia go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Biocardia
Considering the 90-day investment horizon AIM ImmunoTech is expected to under-perform the Biocardia. In addition to that, AIM ImmunoTech is 1.43 times more volatile than Biocardia. It trades about -0.34 of its total potential returns per unit of risk. Biocardia is currently generating about -0.08 per unit of volatility. If you would invest 227.00 in Biocardia on November 28, 2024 and sell it today you would lose (22.00) from holding Biocardia or give up 9.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ImmunoTech vs. Biocardia
Performance |
| Timeline |
| AIM ImmunoTech |
| Biocardia |
AIM ImmunoTech and Biocardia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Biocardia
The main advantage of trading using opposite AIM ImmunoTech and Biocardia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Biocardia 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 Biocardia will offset losses from the drop in Biocardia's long position.| AIM ImmunoTech vs. Aptorum Group Ltd | AIM ImmunoTech vs. Biocardia | AIM ImmunoTech vs. Virax Biolabs Group | AIM ImmunoTech vs. Revelation Biosciences |
| Biocardia vs. Aerovate Therapeutics | Biocardia vs. Adagene | Biocardia vs. Acrivon Therapeutics, Common | Biocardia vs. Rezolute |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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