Correlation Between Ainos and Bone Biologics
Can any of the company-specific risk be diversified away by investing in both Ainos and Bone Biologics 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 Bone Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainos Inc and Bone Biologics Corp, you can compare the effects of market volatilities on Ainos and Bone Biologics 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 Bone Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainos and Bone Biologics.
Diversification Opportunities for Ainos and Bone Biologics
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ainos and Bone is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ainos Inc and Bone Biologics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bone Biologics Corp 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 Bone Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bone Biologics Corp has no effect on the direction of Ainos i.e., Ainos and Bone Biologics go up and down completely randomly.
Pair Corralation between Ainos and Bone Biologics
Assuming the 90 days horizon Ainos Inc is expected to generate 8.9 times more return on investment than Bone Biologics. However, Ainos is 8.9 times more volatile than Bone Biologics Corp. It trades about 0.23 of its potential returns per unit of risk. Bone Biologics Corp is currently generating about 0.1 per unit of risk. If you would invest 0.00 in Ainos Inc on November 2, 2024 and sell it today you would earn a total of 15.00 from holding Ainos Inc or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 34.65% |
| Values | Daily Returns |
Ainos Inc vs. Bone Biologics Corp
Performance |
| Timeline |
| Ainos Inc |
| Bone Biologics Corp |
Ainos and Bone Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainos and Bone Biologics
The main advantage of trading using opposite Ainos and Bone Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainos position performs unexpectedly, Bone Biologics 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 Bone Biologics will offset losses from the drop in Bone Biologics' long position.| Ainos vs. Alignment Healthcare LLC | Ainos vs. Summit Materials | Ainos vs. Nicola Mining | Ainos vs. Inflection Point Acquisition |
| Bone Biologics vs. Bone Biologics Corp | Bone Biologics vs. Biofrontera Warrants | Bone Biologics vs. Inspira Technologies Oxy |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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