Correlation Between Aethlon Medical and Rapid Micro
Can any of the company-specific risk be diversified away by investing in both Aethlon Medical and Rapid Micro 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 Rapid Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aethlon Medical and Rapid Micro Biosystems, you can compare the effects of market volatilities on Aethlon Medical and Rapid Micro 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 Rapid Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aethlon Medical and Rapid Micro.
Diversification Opportunities for Aethlon Medical and Rapid Micro
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aethlon and Rapid is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aethlon Medical and Rapid Micro Biosystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rapid Micro Biosystems 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 Rapid Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rapid Micro Biosystems has no effect on the direction of Aethlon Medical i.e., Aethlon Medical and Rapid Micro go up and down completely randomly.
Pair Corralation between Aethlon Medical and Rapid Micro
Given the investment horizon of 90 days Aethlon Medical is expected to under-perform the Rapid Micro. But the stock apears to be less risky and, when comparing its historical volatility, Aethlon Medical is 1.63 times less risky than Rapid Micro. The stock trades about -0.09 of its potential returns per unit of risk. The Rapid Micro Biosystems is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 106.00 in Rapid Micro Biosystems on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Rapid Micro Biosystems or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aethlon Medical vs. Rapid Micro Biosystems
Performance |
| Timeline |
| Aethlon Medical |
| Rapid Micro Biosystems |
Aethlon Medical and Rapid Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aethlon Medical and Rapid Micro
The main advantage of trading using opposite Aethlon Medical and Rapid Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aethlon Medical position performs unexpectedly, Rapid Micro 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 Rapid Micro will offset losses from the drop in Rapid Micro's long position.| Aethlon Medical vs. Tivic Health Systems | Aethlon Medical vs. Bluejay Diagnostics | Aethlon Medical vs. Heart Test Laboratories | Aethlon Medical vs. Nuwellis |
| Rapid Micro vs. Rxsight | Rapid Micro vs. Axogen Inc | Rapid Micro vs. Treace Medical Concepts | Rapid Micro vs. Pulmonx Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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