Correlation Between Aethlon Medical and Tivic Health
Can any of the company-specific risk be diversified away by investing in both Aethlon Medical and Tivic Health 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 Tivic Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aethlon Medical and Tivic Health Systems, you can compare the effects of market volatilities on Aethlon Medical and Tivic Health 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 Tivic Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aethlon Medical and Tivic Health.
Diversification Opportunities for Aethlon Medical and Tivic Health
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aethlon and Tivic is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Aethlon Medical and Tivic Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tivic Health 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 Tivic Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tivic Health Systems has no effect on the direction of Aethlon Medical i.e., Aethlon Medical and Tivic Health go up and down completely randomly.
Pair Corralation between Aethlon Medical and Tivic Health
Given the investment horizon of 90 days Aethlon Medical is expected to generate 1.01 times less return on investment than Tivic Health. But when comparing it to its historical volatility, Aethlon Medical is 1.34 times less risky than Tivic Health. It trades about 0.23 of its potential returns per unit of risk. Tivic Health Systems is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Tivic Health Systems on October 20, 2024 and sell it today you would earn a total of 9.00 from holding Tivic Health Systems or generate 45.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aethlon Medical vs. Tivic Health Systems
Performance |
| Timeline |
| Aethlon Medical |
| Tivic Health Systems |
Aethlon Medical and Tivic Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aethlon Medical and Tivic Health
The main advantage of trading using opposite Aethlon Medical and Tivic Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aethlon Medical position performs unexpectedly, Tivic Health 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 Tivic Health will offset losses from the drop in Tivic Health's long position.| Aethlon Medical vs. Tivic Health Systems | Aethlon Medical vs. Bluejay Diagnostics | Aethlon Medical vs. Heart Test Laboratories | Aethlon Medical vs. Nuwellis |
| Tivic Health vs. Bluejay Diagnostics | Tivic Health vs. Heart Test Laboratories | Tivic Health vs. Nuwellis | Tivic Health vs. Bone Biologics 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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