Correlation Between AIM ImmunoTech and BridgeBio Pharma

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Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and BridgeBio Pharma 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 BridgeBio Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ImmunoTech and BridgeBio Pharma, you can compare the effects of market volatilities on AIM ImmunoTech and BridgeBio Pharma 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 BridgeBio Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and BridgeBio Pharma.

Diversification Opportunities for AIM ImmunoTech and BridgeBio Pharma

-0.85
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AIM and BridgeBio is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and BridgeBio Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BridgeBio Pharma 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 BridgeBio Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BridgeBio Pharma has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and BridgeBio Pharma go up and down completely randomly.

Pair Corralation between AIM ImmunoTech and BridgeBio Pharma

Considering the 90-day investment horizon AIM ImmunoTech is expected to under-perform the BridgeBio Pharma. In addition to that, AIM ImmunoTech is 1.69 times more volatile than BridgeBio Pharma. It trades about -0.12 of its total potential returns per unit of risk. BridgeBio Pharma is currently generating about 0.2 per unit of volatility. If you would invest  5,000  in BridgeBio Pharma on August 30, 2025 and sell it today you would earn a total of  2,172  from holding BridgeBio Pharma or generate 43.44% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

AIM ImmunoTech  vs.  BridgeBio Pharma

 Performance 
       Timeline  
AIM ImmunoTech 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days AIM ImmunoTech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
BridgeBio Pharma 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in BridgeBio Pharma are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady forward indicators, BridgeBio Pharma displayed solid returns over the last few months and may actually be approaching a breakup point.

AIM ImmunoTech and BridgeBio Pharma Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AIM ImmunoTech and BridgeBio Pharma

The main advantage of trading using opposite AIM ImmunoTech and BridgeBio Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, BridgeBio Pharma 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 BridgeBio Pharma will offset losses from the drop in BridgeBio Pharma's long position.
The idea behind AIM ImmunoTech and BridgeBio Pharma 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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