Correlation Between AIM ImmunoTech and Unicycive Therapeutics
Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Unicycive 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 Unicycive 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 Unicycive Therapeutics, you can compare the effects of market volatilities on AIM ImmunoTech and Unicycive 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 Unicycive Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Unicycive Therapeutics.
Diversification Opportunities for AIM ImmunoTech and Unicycive Therapeutics
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AIM and Unicycive is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Unicycive Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unicycive 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 Unicycive Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unicycive Therapeutics has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Unicycive Therapeutics go up and down completely randomly.
Pair Corralation between AIM ImmunoTech and Unicycive Therapeutics
Considering the 90-day investment horizon AIM ImmunoTech is expected to under-perform the Unicycive Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, AIM ImmunoTech is 1.26 times less risky than Unicycive Therapeutics. The stock trades about -0.01 of its potential returns per unit of risk. The Unicycive Therapeutics is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 170.00 in Unicycive Therapeutics on September 2, 2024 and sell it today you would lose (101.00) from holding Unicycive Therapeutics or give up 59.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ImmunoTech vs. Unicycive Therapeutics
Performance |
| Timeline |
| AIM ImmunoTech |
| Unicycive Therapeutics |
AIM ImmunoTech and Unicycive Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ImmunoTech and Unicycive Therapeutics
The main advantage of trading using opposite AIM ImmunoTech and Unicycive Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Unicycive 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 Unicycive Therapeutics will offset losses from the drop in Unicycive Therapeutics' long position.| AIM ImmunoTech vs. Aptorum Group Ltd | AIM ImmunoTech vs. Biocardia | AIM ImmunoTech vs. Virax Biolabs Group | AIM ImmunoTech vs. Revelation Biosciences |
| Unicycive Therapeutics vs. Transcode Therapeutics | Unicycive Therapeutics vs. Cardio Diagnostics Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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