Correlation Between Aethlon Medical and SINTX Technologies
Can any of the company-specific risk be diversified away by investing in both Aethlon Medical and SINTX Technologies 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 SINTX Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aethlon Medical and SINTX Technologies, you can compare the effects of market volatilities on Aethlon Medical and SINTX Technologies 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 SINTX Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aethlon Medical and SINTX Technologies.
Diversification Opportunities for Aethlon Medical and SINTX Technologies
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aethlon and SINTX is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aethlon Medical and SINTX Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINTX Technologies 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 SINTX Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINTX Technologies has no effect on the direction of Aethlon Medical i.e., Aethlon Medical and SINTX Technologies go up and down completely randomly.
Pair Corralation between Aethlon Medical and SINTX Technologies
Given the investment horizon of 90 days Aethlon Medical is expected to under-perform the SINTX Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Aethlon Medical is 3.82 times less risky than SINTX Technologies. The stock trades about -0.56 of its potential returns per unit of risk. The SINTX Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 313.00 in SINTX Technologies on December 7, 2024 and sell it today you would earn a total of 18.00 from holding SINTX Technologies or generate 5.75% 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. SINTX Technologies
Performance |
| Timeline |
| Aethlon Medical |
| SINTX Technologies |
Aethlon Medical and SINTX Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aethlon Medical and SINTX Technologies
The main advantage of trading using opposite Aethlon Medical and SINTX Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aethlon Medical position performs unexpectedly, SINTX Technologies 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 SINTX Technologies will offset losses from the drop in SINTX Technologies' long position.| Aethlon Medical vs. Tivic Health Systems | Aethlon Medical vs. Bluejay Diagnostics | Aethlon Medical vs. Heart Test Laboratories | Aethlon Medical vs. Nuwellis |
| SINTX Technologies vs. ReShape Lifesciences | SINTX Technologies vs. Bone Biologics Corp | SINTX Technologies vs. Tivic Health Systems | SINTX Technologies 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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