Correlation Between ABVC Biopharma and AIM ImmunoTech

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

By analyzing existing cross correlation between ABVC Biopharma and AIM ImmunoTech, you can compare the effects of market volatilities on ABVC Biopharma 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 ABVC Biopharma with a short position of AIM ImmunoTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABVC Biopharma and AIM ImmunoTech.

Diversification Opportunities for ABVC Biopharma and AIM ImmunoTech

-0.13

Correlation Coefficient

ABVC Biopharma  AIM ImmunoTech

Good diversification

The 3 months correlation between ABVC and AIM is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding ABVC Biopharma and AIM ImmunoTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ImmunoTech and ABVC Biopharma 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 ABVC Biopharma 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 ABVC Biopharma i.e., ABVC Biopharma and AIM ImmunoTech go up and down completely randomly.

Pair Corralation between ABVC Biopharma and AIM ImmunoTech

Given the investment horizon of 90 days ABVC Biopharma is expected to generate 0.99 times more return on investment than AIM ImmunoTech. However, ABVC Biopharma is 1.01 times less risky than AIM ImmunoTech. It trades about 0.16 of its potential returns per unit of risk. AIM ImmunoTech is currently generating about -0.12 per unit of risk. If you would invest  146.00  in ABVC Biopharma on May 14, 2025 and sell it today you would earn a total of  149.00  from holding ABVC Biopharma or generate 102.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

ABVC Biopharma  vs.  AIM ImmunoTech

ABVC Biopharma

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ABVC Biopharma are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, ABVC Biopharma exhibited solid returns over the last few months and may actually be approaching a breakup point.

AIM ImmunoTech

Risk-Adjusted Performance

Weakest

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

Pair Trading with ABVC Biopharma and AIM ImmunoTech

The main advantage of trading using opposite ABVC Biopharma and AIM ImmunoTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABVC Biopharma 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.

The idea behind ABVC Biopharma and AIM ImmunoTech 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.