Correlation Between Ainos and NETGEAR
Can any of the company-specific risk be diversified away by investing in both Ainos and NETGEAR 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 NETGEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainos Inc and NETGEAR, you can compare the effects of market volatilities on Ainos and NETGEAR 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 NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainos and NETGEAR.
Diversification Opportunities for Ainos and NETGEAR
Weak diversification
The 3 months correlation between Ainos and NETGEAR is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ainos Inc and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR 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 NETGEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NETGEAR has no effect on the direction of Ainos i.e., Ainos and NETGEAR go up and down completely randomly.
Pair Corralation between Ainos and NETGEAR
Assuming the 90 days horizon Ainos Inc is expected to generate 37.83 times more return on investment than NETGEAR. However, Ainos is 37.83 times more volatile than NETGEAR. It trades about 0.13 of its potential returns per unit of risk. NETGEAR is currently generating about 0.04 per unit of risk. If you would invest 31.00 in Ainos Inc on December 2, 2024 and sell it today you would lose (9.00) from holding Ainos Inc or give up 29.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 50.3% |
| Values | Daily Returns |
Ainos Inc vs. NETGEAR
Performance |
| Timeline |
| Ainos Inc |
| NETGEAR |
Ainos and NETGEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainos and NETGEAR
The main advantage of trading using opposite Ainos and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainos position performs unexpectedly, NETGEAR 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 NETGEAR will offset losses from the drop in NETGEAR's long position.| Ainos vs. Kingboard Chemical Holdings | ||
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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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