Correlation Between Ainos and Nexalin Technology
Can any of the company-specific risk be diversified away by investing in both Ainos and Nexalin Technology 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 Ainos and Nexalin Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainos Inc and Nexalin Technology, you can compare the effects of market volatilities on Ainos and Nexalin Technology 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 Ainos with a short position of Nexalin Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainos and Nexalin Technology.
Diversification Opportunities for Ainos and Nexalin Technology
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainos and Nexalin is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ainos Inc and Nexalin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexalin Technology and Ainos 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 Ainos Inc are associated (or correlated) with Nexalin Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexalin Technology has no effect on the direction of Ainos i.e., Ainos and Nexalin Technology go up and down completely randomly.
Pair Corralation between Ainos and Nexalin Technology
Given the investment horizon of 90 days Ainos Inc is expected to under-perform the Nexalin Technology. But the stock apears to be less risky and, when comparing its historical volatility, Ainos Inc is 1.93 times less risky than Nexalin Technology. The stock trades about -0.15 of its potential returns per unit of risk. The Nexalin Technology is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 220.00 in Nexalin Technology on August 27, 2024 and sell it today you would earn a total of 170.00 from holding Nexalin Technology or generate 77.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainos Inc vs. Nexalin Technology
Performance |
| Timeline |
| Ainos Inc |
| Nexalin Technology |
Ainos and Nexalin Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainos and Nexalin Technology
The main advantage of trading using opposite Ainos and Nexalin Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainos position performs unexpectedly, Nexalin Technology 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 Nexalin Technology will offset losses from the drop in Nexalin Technology's long position.The idea behind Ainos Inc and Nexalin Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Nexalin Technology vs. Electromed | Nexalin Technology vs. Armm Inc | Nexalin Technology vs. SurModics | Nexalin Technology vs. Bluejay Diagnostics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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