Correlation Between AIM ImmunoTech and MSP Recovery

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

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

Diversification Opportunities for AIM ImmunoTech and MSP Recovery

0.29

Correlation Coefficient

AIM ImmunoTech  MSP Recovery

Modest diversification

The 3 months correlation between AIM and MSP is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding AIM ImmunoTech and MSP Recovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSP Recovery 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 MSP Recovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSP Recovery has no effect on the direction of AIM ImmunoTech i.e., AIM ImmunoTech and MSP Recovery go up and down completely randomly.

Pair Corralation between AIM ImmunoTech and MSP Recovery

Considering the 90-day investment horizon AIM ImmunoTech is expected to generate 0.2 times more return on investment than MSP Recovery. However, AIM ImmunoTech is 5.08 times less risky than MSP Recovery. It trades about -0.15 of its potential returns per unit of risk. MSP Recovery is currently generating about -0.04 per unit of risk. If you would invest  267.00  in AIM ImmunoTech on August 13, 2025 and sell it today you would lose (109.50) from holding AIM ImmunoTech or give up 41.01% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

AIM ImmunoTech  vs.  MSP Recovery

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 December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

MSP Recovery

Risk-Adjusted Performance

Weakest

Over the last 90 days MSP Recovery has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with AIM ImmunoTech and MSP Recovery

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

The idea behind AIM ImmunoTech and MSP Recovery 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.