Correlation Between Aethlon Medical and Senseonics Holdings
Can any of the company-specific risk be diversified away by investing in both Aethlon Medical and Senseonics Holdings 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 Senseonics Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aethlon Medical and Senseonics Holdings, you can compare the effects of market volatilities on Aethlon Medical and Senseonics Holdings 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 Senseonics Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aethlon Medical and Senseonics Holdings.
Diversification Opportunities for Aethlon Medical and Senseonics Holdings
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aethlon and Senseonics is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Aethlon Medical and Senseonics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senseonics Holdings 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 Senseonics Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senseonics Holdings has no effect on the direction of Aethlon Medical i.e., Aethlon Medical and Senseonics Holdings go up and down completely randomly.
Pair Corralation between Aethlon Medical and Senseonics Holdings
Given the investment horizon of 90 days Aethlon Medical is expected to under-perform the Senseonics Holdings. In addition to that, Aethlon Medical is 1.85 times more volatile than Senseonics Holdings. It trades about -0.01 of its total potential returns per unit of risk. Senseonics Holdings is currently generating about -0.01 per unit of volatility. If you would invest 59.00 in Senseonics Holdings on September 20, 2024 and sell it today you would lose (18.00) from holding Senseonics Holdings or give up 30.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aethlon Medical vs. Senseonics Holdings
Performance |
| Timeline |
| Aethlon Medical |
| Senseonics Holdings |
Aethlon Medical and Senseonics Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aethlon Medical and Senseonics Holdings
The main advantage of trading using opposite Aethlon Medical and Senseonics Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aethlon Medical position performs unexpectedly, Senseonics Holdings 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 Senseonics Holdings will offset losses from the drop in Senseonics Holdings' long position.| Aethlon Medical vs. Tivic Health Systems | Aethlon Medical vs. Bluejay Diagnostics | Aethlon Medical vs. Heart Test Laboratories | Aethlon Medical vs. Nuwellis |
| Senseonics Holdings vs. Insulet | Senseonics Holdings vs. Tandem Diabetes Care | Senseonics Holdings vs. Abbott Laboratories | Senseonics Holdings vs. Align Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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