Correlation Between GoldMining and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both GoldMining 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 GoldMining and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and AIM ImmunoTech, you can compare the effects of market volatilities on GoldMining 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 GoldMining with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and AIM ImmunoTech.
Diversification Opportunities for GoldMining and AIM ImmunoTech
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GoldMining and AIM is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and GoldMining 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 GoldMining 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 GoldMining i.e., GoldMining and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between GoldMining and AIM ImmunoTech
Assuming the 90 days trading horizon GoldMining is expected to under-perform the AIM ImmunoTech. But the stock apears to be less risky and, when comparing its historical volatility, GoldMining is 2.58 times less risky than AIM ImmunoTech. The stock trades about -0.11 of its potential returns per unit of risk. The AIM ImmunoTech is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 20.00 in AIM ImmunoTech on October 22, 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 Together |
Strength | Very Weak |
Accuracy | 70.73% |
Values | Daily Returns |
GoldMining vs. AIM ImmunoTech
Performance |
Timeline |
GoldMining |
AIM ImmunoTech |
GoldMining and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GoldMining and AIM ImmunoTech
The main advantage of trading using opposite GoldMining and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining 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.GoldMining vs. CleanTech Lithium plc | GoldMining vs. Air Products Chemicals | GoldMining vs. UNIQA Insurance Group | GoldMining vs. Universal Display Corp |
AIM ImmunoTech vs. Universal Display Corp | AIM ImmunoTech vs. Charter Communications Cl | AIM ImmunoTech vs. Playtech Plc | AIM ImmunoTech vs. Games Workshop Group |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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