Correlation Between AIM ImmunoTech and Batm Advanced

Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Batm Advanced 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 AIM ImmunoTech and Batm Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AIM ImmunoTech and Batm Advanced Communications, you can compare the effects of market volatilities on AIM ImmunoTech and Batm Advanced 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 AIM ImmunoTech with a short position of Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Batm Advanced.

Diversification Opportunities for AIM ImmunoTech and Batm Advanced

-0.16

Correlation Coefficient

AIM ImmunoTech  Batm Advanced

Good diversification

The 3 months correlation between AIM and Batm is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun and AIM ImmunoTech 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 AIM ImmunoTech are associated (or correlated) with Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Batm Advanced go up and down completely randomly.

Pair Corralation between AIM ImmunoTech and Batm Advanced

Assuming the 90 days trading horizon AIM ImmunoTech is expected to generate 3.34 times more return on investment than Batm Advanced. However, AIM ImmunoTech is 3.34 times more volatile than Batm Advanced Communications. It trades about 0.03 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.06 per unit of risk. If you would invest  20.00  in AIM ImmunoTech on October 23, 2024 and sell it today you would earn a total of  0.00  from holding AIM ImmunoTech or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AIM ImmunoTech  vs.  Batm Advanced Communications

AIM ImmunoTech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AIM ImmunoTech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Batm Advanced Commun

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Batm Advanced Communications are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Batm Advanced is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with AIM ImmunoTech and Batm Advanced

The main advantage of trading using opposite AIM ImmunoTech and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Batm Advanced 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 Batm Advanced will offset losses from the drop in Batm Advanced's long position.

The idea behind AIM ImmunoTech and Batm Advanced Communications pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.