Correlation Between Electromed and Ainos
Can any of the company-specific risk be diversified away by investing in both Electromed and Ainos 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 Electromed and Ainos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electromed and Ainos Inc, you can compare the effects of market volatilities on Electromed and Ainos 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 Electromed with a short position of Ainos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electromed and Ainos.
Diversification Opportunities for Electromed and Ainos
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electromed and Ainos is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Electromed and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and Electromed 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 Electromed are associated (or correlated) with Ainos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainos Inc has no effect on the direction of Electromed i.e., Electromed and Ainos go up and down completely randomly.
Pair Corralation between Electromed and Ainos
Given the investment horizon of 90 days Electromed is expected to generate 8.62 times less return on investment than Ainos. But when comparing it to its historical volatility, Electromed is 10.03 times less risky than Ainos. It trades about 0.18 of its potential returns per unit of risk. Ainos Inc is currently generating about 0.15 of returns per unit of risk over similar time horizon. 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 |
Electromed vs. Ainos Inc
Performance |
| Timeline |
| Electromed |
| Ainos Inc |
Risk-Adjusted Performance
Solid
Weak | Strong |
Electromed and Ainos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electromed and Ainos
The main advantage of trading using opposite Electromed and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electromed position performs unexpectedly, Ainos 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 Ainos will offset losses from the drop in Ainos' long position.| Electromed vs. Neuropace | Electromed vs. Orthopediatrics Corp | Electromed vs. SurModics | Electromed vs. Paragon 28 |
| Ainos vs. Stanley Black Decker | Ainos vs. Toro Co | Ainos vs. Compania Cervecerias Unidas | Ainos vs. Unilever PLC ADR |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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