Correlation Between Sabien Technology and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both Sabien Technology 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 Sabien Technology and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabien Technology Group and AIM ImmunoTech, you can compare the effects of market volatilities on Sabien Technology 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 Sabien Technology with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabien Technology and AIM ImmunoTech.
Diversification Opportunities for Sabien Technology and AIM ImmunoTech
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabien and AIM is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sabien Technology Group and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and Sabien Technology 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 Sabien Technology Group 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 Sabien Technology i.e., Sabien Technology and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between Sabien Technology and AIM ImmunoTech
Assuming the 90 days trading horizon Sabien Technology Group is expected to generate 0.68 times more return on investment than AIM ImmunoTech. However, Sabien Technology Group is 1.47 times less risky than AIM ImmunoTech. It trades about 0.01 of its potential returns per unit of risk. AIM ImmunoTech is currently generating about -0.06 per unit of risk. If you would invest 1,225 in Sabien Technology Group on September 1, 2024 and sell it today you would lose (50.00) from holding Sabien Technology Group or give up 4.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabien Technology Group vs. AIM ImmunoTech
Performance |
| Timeline |
| Sabien Technology |
| AIM ImmunoTech |
Sabien Technology and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabien Technology and AIM ImmunoTech
The main advantage of trading using opposite Sabien Technology and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabien Technology 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.| Sabien Technology vs. Synchrony Financial | Sabien Technology vs. CleanTech Lithium plc | Sabien Technology vs. Virgin Wines UK | Sabien Technology vs. BW Offshore |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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