Correlation Between BriaCell Therapeutics and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both BriaCell Therapeutics 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 BriaCell Therapeutics and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BriaCell Therapeutics Corp and AIM ImmunoTech, you can compare the effects of market volatilities on BriaCell Therapeutics 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 BriaCell Therapeutics with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of BriaCell Therapeutics and AIM ImmunoTech.
Diversification Opportunities for BriaCell Therapeutics and AIM ImmunoTech
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BriaCell and AIM is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding BriaCell Therapeutics Corp and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and BriaCell Therapeutics 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 BriaCell Therapeutics Corp 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 BriaCell Therapeutics i.e., BriaCell Therapeutics and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between BriaCell Therapeutics and AIM ImmunoTech
Assuming the 90 days horizon BriaCell Therapeutics is expected to generate 2.49 times less return on investment than AIM ImmunoTech. In addition to that, BriaCell Therapeutics is 1.49 times more volatile than AIM ImmunoTech. It trades about 0.0 of its total potential returns per unit of risk. AIM ImmunoTech is currently generating about 0.01 per unit of volatility. If you would invest 38.00 in AIM ImmunoTech on September 3, 2024 and sell it today you would lose (16.00) from holding AIM ImmunoTech or give up 42.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
BriaCell Therapeutics Corp vs. AIM ImmunoTech
Performance |
| Timeline |
| BriaCell Therapeutics |
| AIM ImmunoTech |
BriaCell Therapeutics and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BriaCell Therapeutics and AIM ImmunoTech
The main advantage of trading using opposite BriaCell Therapeutics and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BriaCell Therapeutics 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.| BriaCell Therapeutics vs. Briacell Therapeutics Corp | BriaCell Therapeutics vs. GeoVax Labs | BriaCell Therapeutics vs. immatics biotechnologies GmbH | BriaCell Therapeutics vs. CannBioRx Life Sciences |
| AIM ImmunoTech vs. Aptorum Group Ltd | AIM ImmunoTech vs. Biocardia | AIM ImmunoTech vs. Virax Biolabs Group | AIM ImmunoTech vs. Revelation Biosciences |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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