Correlation Between Aethlon Medical and Nuwellis
Can any of the company-specific risk be diversified away by investing in both Aethlon Medical and Nuwellis 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 Nuwellis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aethlon Medical and Nuwellis, you can compare the effects of market volatilities on Aethlon Medical and Nuwellis 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 Nuwellis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aethlon Medical and Nuwellis.
Diversification Opportunities for Aethlon Medical and Nuwellis
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aethlon and Nuwellis is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Aethlon Medical and Nuwellis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuwellis 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 Nuwellis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuwellis has no effect on the direction of Aethlon Medical i.e., Aethlon Medical and Nuwellis go up and down completely randomly.
Pair Corralation between Aethlon Medical and Nuwellis
Given the investment horizon of 90 days Aethlon Medical is expected to generate 0.33 times more return on investment than Nuwellis. However, Aethlon Medical is 2.99 times less risky than Nuwellis. It trades about -0.09 of its potential returns per unit of risk. Nuwellis is currently generating about -0.2 per unit of risk. If you would invest 39.00 in Aethlon Medical on September 19, 2024 and sell it today you would lose (1.90) from holding Aethlon Medical or give up 4.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aethlon Medical vs. Nuwellis
Performance |
| Timeline |
| Aethlon Medical |
| Nuwellis |
Aethlon Medical and Nuwellis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aethlon Medical and Nuwellis
The main advantage of trading using opposite Aethlon Medical and Nuwellis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aethlon Medical position performs unexpectedly, Nuwellis 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 Nuwellis will offset losses from the drop in Nuwellis' long position.| Aethlon Medical vs. Tivic Health Systems | Aethlon Medical vs. Bluejay Diagnostics | Aethlon Medical vs. Heart Test Laboratories | Aethlon Medical vs. Nuwellis |
| Nuwellis vs. ReShape Lifesciences | Nuwellis vs. Tenon Medical | Nuwellis vs. SINTX Technologies | Nuwellis vs. NanoVibronix |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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