Correlation Between Aptorum Group and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both Aptorum Group 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 Aptorum Group and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptorum Group Ltd and AIM ImmunoTech, you can compare the effects of market volatilities on Aptorum Group 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 Aptorum Group with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptorum Group and AIM ImmunoTech.
Diversification Opportunities for Aptorum Group and AIM ImmunoTech
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aptorum and AIM is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Aptorum Group Ltd and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and Aptorum Group 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 Aptorum Group Ltd 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 Aptorum Group i.e., Aptorum Group and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between Aptorum Group and AIM ImmunoTech
Considering the 90-day investment horizon Aptorum Group Ltd is expected to generate 4.96 times more return on investment than AIM ImmunoTech. However, Aptorum Group is 4.96 times more volatile than AIM ImmunoTech. It trades about 0.03 of its potential returns per unit of risk. AIM ImmunoTech is currently generating about -0.01 per unit of risk. If you would invest 580.00 in Aptorum Group Ltd on September 3, 2024 and sell it today you would lose (495.00) from holding Aptorum Group Ltd or give up 85.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 99.79% |
Values | Daily Returns |
Aptorum Group Ltd vs. AIM ImmunoTech
Performance |
Timeline |
Aptorum Group |
AIM ImmunoTech |
Aptorum Group and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aptorum Group and AIM ImmunoTech
The main advantage of trading using opposite Aptorum Group and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptorum Group 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.Aptorum Group vs. Surrozen | Aptorum Group vs. Unicycive Therapeutics | Aptorum Group vs. Armata Pharmaceuticals | Aptorum Group vs. AIM ImmunoTech |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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