Correlation Between AIM ImmunoTech and Athelney Trust

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

By analyzing existing cross correlation between AIM ImmunoTech and Athelney Trust plc, you can compare the effects of market volatilities on AIM ImmunoTech and Athelney Trust 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 Athelney Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Athelney Trust.

Diversification Opportunities for AIM ImmunoTech and Athelney Trust

0.65

Correlation Coefficient

AIM ImmunoTech  Athelney Trust

Poor diversification

The 3 months correlation between AIM and Athelney is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Athelney Trust plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athelney Trust plc 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 Athelney Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athelney Trust plc has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Athelney Trust go up and down completely randomly.

Pair Corralation between AIM ImmunoTech and Athelney Trust

Assuming the 90 days trading horizon AIM ImmunoTech is expected to under-perform the Athelney Trust. In addition to that, AIM ImmunoTech is 4.15 times more volatile than Athelney Trust plc. It trades about -0.1 of its total potential returns per unit of risk. Athelney Trust plc is currently generating about -0.05 per unit of volatility. If you would invest  18,264  in Athelney Trust plc on September 3, 2024 and sell it today you would lose (764.00) from holding Athelney Trust plc or give up 4.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

AIM ImmunoTech  vs.  Athelney Trust plc

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 January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Athelney Trust plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Athelney Trust plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Athelney Trust 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 Athelney Trust

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

The idea behind AIM ImmunoTech and Athelney Trust plc 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.