Correlation Between Ainos and Electromed
Can any of the company-specific risk be diversified away by investing in both Ainos and Electromed 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 Electromed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainos Inc and Electromed, you can compare the effects of market volatilities on Ainos and Electromed 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 Electromed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainos and Electromed.
Diversification Opportunities for Ainos and Electromed
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainos and Electromed is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ainos Inc and Electromed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electromed 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 Electromed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electromed has no effect on the direction of Ainos i.e., Ainos and Electromed go up and down completely randomly.
Pair Corralation between Ainos and Electromed
Assuming the 90 days horizon Ainos Inc is expected to generate 10.03 times more return on investment than Electromed. However, Ainos is 10.03 times more volatile than Electromed. It trades about 0.15 of its potential returns per unit of risk. Electromed is currently generating about 0.18 per unit of risk. If you would invest 14.00 in Ainos Inc on November 9, 2024 and sell it today you would earn a total of 1.00 from holding Ainos Inc or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
Ainos Inc vs. Electromed
Performance |
| Timeline |
| Ainos Inc |
Risk-Adjusted Performance
Solid
Weak | Strong |
| Electromed |
Ainos and Electromed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainos and Electromed
The main advantage of trading using opposite Ainos and Electromed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainos position performs unexpectedly, Electromed 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 Electromed will offset losses from the drop in Electromed's long position.| Ainos vs. Stanley Black Decker | Ainos vs. Toro Co | Ainos vs. Compania Cervecerias Unidas | Ainos vs. Unilever PLC ADR |
| Electromed vs. Neuropace | Electromed vs. Orthopediatrics Corp | Electromed vs. SurModics | Electromed vs. Paragon 28 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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