Correlation Between GB Group and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both GB 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 GB 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 GB Group plc and AIM ImmunoTech, you can compare the effects of market volatilities on GB 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 GB Group with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of GB Group and AIM ImmunoTech.
Diversification Opportunities for GB Group and AIM ImmunoTech
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GBG and AIM is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GB 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 GB 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 GB 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 GB Group i.e., GB Group and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between GB Group and AIM ImmunoTech
Assuming the 90 days trading horizon GB Group plc is expected to generate 0.37 times more return on investment than AIM ImmunoTech. However, GB Group plc is 2.71 times less risky than AIM ImmunoTech. It trades about 0.21 of its potential returns per unit of risk. AIM ImmunoTech is currently generating about -0.06 per unit of risk. If you would invest 34,020 in GB Group plc on September 1, 2024 and sell it today you would earn a total of 3,840 from holding GB Group plc or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
GB Group plc vs. AIM ImmunoTech
Performance |
| Timeline |
| GB Group plc |
| AIM ImmunoTech |
GB Group and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GB Group and AIM ImmunoTech
The main advantage of trading using opposite GB Group and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GB 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.| GB Group vs. Zoom Video Communications | GB Group vs. Teradata Corp | GB Group vs. Public Storage | GB Group vs. Cizzle Biotechnology Holdings |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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