Correlation Between Herald Investment and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both Herald Investment 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 Herald Investment and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Herald Investment Trust and AIM ImmunoTech, you can compare the effects of market volatilities on Herald Investment 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 Herald Investment with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Herald Investment and AIM ImmunoTech.
Diversification Opportunities for Herald Investment and AIM ImmunoTech
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Herald and AIM is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Herald Investment Trust and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and Herald Investment 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 Herald Investment Trust 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 Herald Investment i.e., Herald Investment and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between Herald Investment and AIM ImmunoTech
Assuming the 90 days trading horizon Herald Investment Trust is expected to generate 0.19 times more return on investment than AIM ImmunoTech. However, Herald Investment Trust is 5.37 times less risky than AIM ImmunoTech. It trades about 0.49 of its potential returns per unit of risk. AIM ImmunoTech is currently generating about -0.06 per unit of risk. If you would invest 208,000 in Herald Investment Trust on September 2, 2024 and sell it today you would earn a total of 27,500 from holding Herald Investment Trust or generate 13.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Herald Investment Trust vs. AIM ImmunoTech
Performance |
| Timeline |
| Herald Investment Trust |
| AIM ImmunoTech |
Herald Investment and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Herald Investment and AIM ImmunoTech
The main advantage of trading using opposite Herald Investment and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Herald Investment 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.| Herald Investment vs. Zoom Video Communications | Herald Investment vs. Home Depot | Herald Investment vs. Tyson Foods Cl | Herald Investment vs. Spirent Communications plc |
| AIM ImmunoTech vs. Omega Healthcare Investors | AIM ImmunoTech vs. Cellnex Telecom SA | AIM ImmunoTech vs. Target Healthcare REIT | AIM ImmunoTech vs. Planet Fitness Cl |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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