Correlation Between Fresh Tracks and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both Fresh Tracks 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 Fresh Tracks and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fresh Tracks Therapeutics and AIM ImmunoTech, you can compare the effects of market volatilities on Fresh Tracks 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 Fresh Tracks with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fresh Tracks and AIM ImmunoTech.
Diversification Opportunities for Fresh Tracks and AIM ImmunoTech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fresh and AIM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fresh Tracks Therapeutics and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and Fresh Tracks 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 Fresh Tracks Therapeutics 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 Fresh Tracks i.e., Fresh Tracks and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between Fresh Tracks and AIM ImmunoTech
If you would invest (100.00) in Fresh Tracks Therapeutics on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Fresh Tracks Therapeutics or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Fresh Tracks Therapeutics vs. AIM ImmunoTech
Performance |
| Timeline |
| Fresh Tracks Therapeutics |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| AIM ImmunoTech |
Fresh Tracks and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fresh Tracks and AIM ImmunoTech
The main advantage of trading using opposite Fresh Tracks and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fresh Tracks 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.| Fresh Tracks vs. Assembly Biosciences | Fresh Tracks vs. Instil Bio | Fresh Tracks vs. Nuvation Bio | Fresh Tracks vs. Achilles Therapeutics PLC |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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