Correlation Between Aptamer Group and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both Aptamer 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 Aptamer 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 Aptamer Group PLC and AIM ImmunoTech, you can compare the effects of market volatilities on Aptamer 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 Aptamer Group with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptamer Group and AIM ImmunoTech.
Diversification Opportunities for Aptamer Group and AIM ImmunoTech
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aptamer and AIM is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Aptamer Group PLC and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and Aptamer 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 Aptamer Group PLC 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 Aptamer Group i.e., Aptamer Group and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between Aptamer Group and AIM ImmunoTech
Assuming the 90 days trading horizon Aptamer Group PLC is expected to generate 0.88 times more return on investment than AIM ImmunoTech. However, Aptamer Group PLC is 1.14 times less risky than AIM ImmunoTech. It trades about 0.14 of its potential returns per unit of risk. AIM ImmunoTech is currently generating about -0.07 per unit of risk. If you would invest 24.00 in Aptamer Group PLC on November 2, 2024 and sell it today you would earn a total of 19.00 from holding Aptamer Group PLC or generate 79.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptamer Group PLC vs. AIM ImmunoTech
Performance |
| Timeline |
| Aptamer Group PLC |
| AIM ImmunoTech |
Aptamer Group and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptamer Group and AIM ImmunoTech
The main advantage of trading using opposite Aptamer Group and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptamer 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.| Aptamer Group vs. Fevertree Drinks Plc | Aptamer Group vs. Ebro Foods | Aptamer Group vs. Fresenius Medical Care | Aptamer Group vs. Ashtead Technology Holdings |
| AIM ImmunoTech vs. Charter Communications Cl | AIM ImmunoTech vs. Porvair plc | AIM ImmunoTech vs. Gamma Communications PLC | AIM ImmunoTech vs. Spirent Communications plc |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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