Correlation Between AIM ImmunoTech and Lantern Pharma

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Can any of the company-specific risk be diversified away by investing in both AIM ImmunoTech and Lantern 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 Lantern 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 Lantern Pharma, you can compare the effects of market volatilities on AIM ImmunoTech and Lantern 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 Lantern Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ImmunoTech and Lantern Pharma.

Diversification Opportunities for AIM ImmunoTech and Lantern Pharma

0.75
  Correlation Coefficient

Poor diversification

The 3 months correlation between AIM and Lantern is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and Lantern Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lantern 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 Lantern Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lantern Pharma has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and Lantern Pharma go up and down completely randomly.

Pair Corralation between AIM ImmunoTech and Lantern Pharma

Considering the 90-day investment horizon AIM ImmunoTech is expected to under-perform the Lantern Pharma. In addition to that, AIM ImmunoTech is 1.1 times more volatile than Lantern Pharma. It trades about -0.15 of its total potential returns per unit of risk. Lantern Pharma is currently generating about -0.08 per unit of volatility. If you would invest  444.00  in Lantern Pharma on August 18, 2025 and sell it today you would lose (106.00) from holding Lantern Pharma or give up 23.87% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

AIM ImmunoTech  vs.  Lantern 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 inconsistent 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.
Lantern Pharma 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Lantern Pharma 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 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.

AIM ImmunoTech and Lantern Pharma Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AIM ImmunoTech and Lantern Pharma

The main advantage of trading using opposite AIM ImmunoTech and Lantern Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ImmunoTech position performs unexpectedly, Lantern 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 Lantern Pharma will offset losses from the drop in Lantern Pharma's long position.
The idea behind AIM ImmunoTech and Lantern 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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