Correlation Between Avinger and GlucoTrack
Can any of the company-specific risk be diversified away by investing in both Avinger and GlucoTrack 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 Avinger and GlucoTrack into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avinger and GlucoTrack, you can compare the effects of market volatilities on Avinger and GlucoTrack 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 Avinger with a short position of GlucoTrack. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avinger and GlucoTrack.
Diversification Opportunities for Avinger and GlucoTrack
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Avinger and GlucoTrack is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Avinger and GlucoTrack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlucoTrack and Avinger 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 Avinger are associated (or correlated) with GlucoTrack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlucoTrack has no effect on the direction of Avinger i.e., Avinger and GlucoTrack go up and down completely randomly.
Pair Corralation between Avinger and GlucoTrack
Given the investment horizon of 90 days Avinger is expected to generate 0.16 times more return on investment than GlucoTrack. However, Avinger is 6.42 times less risky than GlucoTrack. It trades about 0.03 of its potential returns per unit of risk. GlucoTrack is currently generating about -0.26 per unit of risk. If you would invest 82.00 in Avinger on August 27, 2024 and sell it today you would earn a total of 1.00 from holding Avinger or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avinger vs. GlucoTrack
Performance |
| Timeline |
| Avinger |
| GlucoTrack |
Avinger and GlucoTrack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avinger and GlucoTrack
The main advantage of trading using opposite Avinger and GlucoTrack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avinger position performs unexpectedly, GlucoTrack 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 GlucoTrack will offset losses from the drop in GlucoTrack's long position.| Avinger vs. GlucoTrack | Avinger vs. Nexgel Inc | Avinger vs. Sharps Technology | Avinger vs. Innovative Eyewear |
| GlucoTrack vs. Heartbeam | GlucoTrack vs. EUDA Health Holdings | GlucoTrack vs. Nutex Health | GlucoTrack vs. Healthcare Triangle |
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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