Correlation Between Ashtead Technology and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both Ashtead Technology 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 Ashtead Technology and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashtead Technology Holdings and AIM ImmunoTech, you can compare the effects of market volatilities on Ashtead Technology 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 Ashtead Technology with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashtead Technology and AIM ImmunoTech.
Diversification Opportunities for Ashtead Technology and AIM ImmunoTech
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ashtead and AIM is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ashtead Technology Holdings and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and Ashtead Technology 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 Ashtead Technology Holdings 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 Ashtead Technology i.e., Ashtead Technology and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between Ashtead Technology and AIM ImmunoTech
Assuming the 90 days trading horizon Ashtead Technology Holdings is expected to generate 0.29 times more return on investment than AIM ImmunoTech. However, Ashtead Technology Holdings is 3.44 times less risky than AIM ImmunoTech. It trades about 0.0 of its potential returns per unit of risk. AIM ImmunoTech is currently generating about -0.06 per unit of risk. If you would invest 55,200 in Ashtead Technology Holdings on September 1, 2024 and sell it today you would lose (100.00) from holding Ashtead Technology Holdings or give up 0.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashtead Technology Holdings vs. AIM ImmunoTech
Performance |
| Timeline |
| Ashtead Technology |
| AIM ImmunoTech |
Ashtead Technology and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashtead Technology and AIM ImmunoTech
The main advantage of trading using opposite Ashtead Technology and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashtead Technology 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.| Ashtead Technology vs. Orient Telecoms | Ashtead Technology vs. Auction Technology Group | Ashtead Technology vs. Sabien Technology Group | Ashtead Technology vs. DXC Technology Co |
| AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Diversified Energy |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |