Correlation Between Sellas Life and AIM ImmunoTech
Can any of the company-specific risk be diversified away by investing in both Sellas Life 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 Sellas Life and AIM ImmunoTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and AIM ImmunoTech, you can compare the effects of market volatilities on Sellas Life 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 Sellas Life with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and AIM ImmunoTech.
Diversification Opportunities for Sellas Life and AIM ImmunoTech
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sellas and AIM is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and Sellas Life 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 Sellas Life Sciences 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 Sellas Life i.e., Sellas Life and AIM ImmunoTech go up and down completely randomly.
Pair Corralation between Sellas Life and AIM ImmunoTech
Considering the 90-day investment horizon Sellas Life Sciences is expected to generate 0.91 times more return on investment than AIM ImmunoTech. However, Sellas Life Sciences is 1.1 times less risky than AIM ImmunoTech. It trades about -0.06 of its potential returns per unit of risk. AIM ImmunoTech is currently generating about -0.2 per unit of risk. If you would invest 191.00 in Sellas Life Sciences on August 25, 2025 and sell it today you would lose (38.00) from holding Sellas Life Sciences or give up 19.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sellas Life Sciences vs. AIM ImmunoTech
Performance |
| Timeline |
| Sellas Life Sciences |
| AIM ImmunoTech |
Sellas Life and AIM ImmunoTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and AIM ImmunoTech
The main advantage of trading using opposite Sellas Life and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life 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.| Sellas Life vs. NeOnc Technologies Holdings, | Sellas Life vs. Mediwound | Sellas Life vs. Genfit SA | Sellas Life vs. Protara Therapeutics |
| AIM ImmunoTech vs. Kala Pharmaceuticals | AIM ImmunoTech vs. Oragenics | AIM ImmunoTech vs. Pasithea Therapeutics Corp | AIM ImmunoTech vs. Vyne Therapeutics |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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