Correlation Between AIM ImmunoTech and Applied DNA

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

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

Diversification Opportunities for AIM ImmunoTech and Applied DNA

0.65

Correlation Coefficient

AIM ImmunoTech  Applied DNA

Poor diversification

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

Pair Corralation between AIM ImmunoTech and Applied DNA

Considering the 90-day investment horizon AIM ImmunoTech is expected to under-perform the Applied DNA. But the stock apears to be less risky and, when comparing its historical volatility, AIM ImmunoTech is 2.79 times less risky than Applied DNA. The stock trades about -0.14 of its potential returns per unit of risk. The Applied DNA Sciences is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest  268.00  in Applied DNA Sciences on September 12, 2025 and sell it today you would earn a total of  294.00  from holding Applied DNA Sciences or generate 109.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	28.57%
Values	Daily Returns

AIM ImmunoTech  vs.  Applied DNA Sciences

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 January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Applied DNA Sciences

Risk-Adjusted Performance

Strong

Over the last 90 days Applied DNA Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very inconsistent fundamental indicators, Applied DNA displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AIM ImmunoTech and Applied DNA

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

The idea behind AIM ImmunoTech and Applied DNA Sciences 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.