Correlation Between Biofrontera Warrants and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both Biofrontera Warrants 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 Biofrontera Warrants and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biofrontera Warrants and AIM ImmunoTech, you can compare the effects of market volatilities on Biofrontera Warrants 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 Biofrontera Warrants with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biofrontera Warrants and AIM ImmunoTech.
Diversification Opportunities for Biofrontera Warrants and AIM ImmunoTech
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biofrontera and AIM is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Biofrontera Warrants and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and Biofrontera Warrants 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 Biofrontera Warrants 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 Biofrontera Warrants i.e., Biofrontera Warrants and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between Biofrontera Warrants and AIM ImmunoTech
Assuming the 90 days horizon Biofrontera Warrants is expected to generate 21.18 times more return on investment than AIM ImmunoTech. However, Biofrontera Warrants is 21.18 times more volatile than AIM ImmunoTech. It trades about 0.14 of its potential returns per unit of risk. AIM ImmunoTech is currently generating about 0.01 per unit of risk. If you would invest 30.00 in Biofrontera Warrants on September 3, 2024 and sell it today you would lose (17.00) from holding Biofrontera Warrants or give up 56.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.85% |
| Values | Daily Returns |
Biofrontera Warrants vs. AIM ImmunoTech
Performance |
| Timeline |
| Biofrontera Warrants |
| AIM ImmunoTech |
Biofrontera Warrants and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biofrontera Warrants and AIM ImmunoTech
The main advantage of trading using opposite Biofrontera Warrants and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biofrontera Warrants 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.| Biofrontera Warrants vs. Connect Biopharma Holdings | Biofrontera Warrants vs. Acumen Pharmaceuticals | Biofrontera Warrants vs. Nuvation Bio | Biofrontera Warrants vs. Eledon Pharmaceuticals |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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