Correlation Between Zanaga Iron and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both Zanaga Iron 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 Zanaga Iron and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zanaga Iron Ore and AIM ImmunoTech, you can compare the effects of market volatilities on Zanaga Iron 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 Zanaga Iron with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zanaga Iron and AIM ImmunoTech.
Diversification Opportunities for Zanaga Iron and AIM ImmunoTech
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zanaga and AIM is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Zanaga Iron Ore and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and Zanaga Iron 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 Zanaga Iron Ore 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 Zanaga Iron i.e., Zanaga Iron and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between Zanaga Iron and AIM ImmunoTech
Assuming the 90 days trading horizon Zanaga Iron Ore is expected to generate 1.16 times more return on investment than AIM ImmunoTech. However, Zanaga Iron is 1.16 times more volatile than AIM ImmunoTech. It trades about 0.17 of its potential returns per unit of risk. AIM ImmunoTech is currently generating about 0.07 per unit of risk. If you would invest 684.00 in Zanaga Iron Ore on October 20, 2024 and sell it today you would earn a total of 146.00 from holding Zanaga Iron Ore or generate 21.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Zanaga Iron Ore vs. AIM ImmunoTech
Performance |
| Timeline |
| Zanaga Iron Ore |
| AIM ImmunoTech |
Zanaga Iron and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zanaga Iron and AIM ImmunoTech
The main advantage of trading using opposite Zanaga Iron and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zanaga Iron 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.| Zanaga Iron vs. Atalaya Mining | Zanaga Iron vs. Endeavour Mining Corp | Zanaga Iron vs. Hochschild Mining plc | Zanaga Iron vs. Silvercorp Metals |
| AIM ImmunoTech vs. Zoom Video Communications | AIM ImmunoTech vs. Enbridge | AIM ImmunoTech vs. Endo International PLC | AIM ImmunoTech vs. Ithaca Energy PLC |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |