Correlation Between Aethlon Medical and Delcath Systems
Can any of the company-specific risk be diversified away by investing in both Aethlon Medical and Delcath Systems 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 Aethlon Medical and Delcath Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aethlon Medical and Delcath Systems, you can compare the effects of market volatilities on Aethlon Medical and Delcath Systems 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 Aethlon Medical with a short position of Delcath Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aethlon Medical and Delcath Systems.
Diversification Opportunities for Aethlon Medical and Delcath Systems
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aethlon and Delcath is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aethlon Medical and Delcath Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delcath Systems and Aethlon Medical 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 Aethlon Medical are associated (or correlated) with Delcath Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delcath Systems has no effect on the direction of Aethlon Medical i.e., Aethlon Medical and Delcath Systems go up and down completely randomly.
Pair Corralation between Aethlon Medical and Delcath Systems
Given the investment horizon of 90 days Aethlon Medical is expected to under-perform the Delcath Systems. But the stock apears to be less risky and, when comparing its historical volatility, Aethlon Medical is 1.73 times less risky than Delcath Systems. The stock trades about -0.09 of its potential returns per unit of risk. The Delcath Systems is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 974.00 in Delcath Systems on September 19, 2024 and sell it today you would earn a total of 186.00 from holding Delcath Systems or generate 19.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aethlon Medical vs. Delcath Systems
Performance |
| Timeline |
| Aethlon Medical |
| Delcath Systems |
Aethlon Medical and Delcath Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aethlon Medical and Delcath Systems
The main advantage of trading using opposite Aethlon Medical and Delcath Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aethlon Medical position performs unexpectedly, Delcath Systems 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 Delcath Systems will offset losses from the drop in Delcath Systems' long position.| Aethlon Medical vs. Tivic Health Systems | Aethlon Medical vs. Bluejay Diagnostics | Aethlon Medical vs. Heart Test Laboratories | Aethlon Medical vs. Nuwellis |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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