Correlation Between Global Net and Ainos
Can any of the company-specific risk be diversified away by investing in both Global Net 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 Global Net and Ainos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Net Lease and Ainos Inc, you can compare the effects of market volatilities on Global Net 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 Global Net with a short position of Ainos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Net and Ainos.
Diversification Opportunities for Global Net and Ainos
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and Ainos is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Global Net Lease and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and Global Net 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 Global Net Lease 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 Global Net i.e., Global Net and Ainos go up and down completely randomly.
Pair Corralation between Global Net and Ainos
Assuming the 90 days trading horizon Global Net is expected to generate 101.48 times less return on investment than Ainos. But when comparing it to its historical volatility, Global Net Lease is 29.25 times less risky than Ainos. It trades about 0.09 of its potential returns per unit of risk. Ainos Inc is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 4.50 in Ainos Inc on October 25, 2024 and sell it today you would earn a total of 13.50 from holding Ainos Inc or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Global Net Lease vs. Ainos Inc
Performance |
| Timeline |
| Global Net Lease |
| Ainos Inc |
Global Net and Ainos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Net and Ainos
The main advantage of trading using opposite Global Net and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Net 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.| Global Net vs. Sphere Entertainment Co | Global Net vs. MOGU Inc | Global Net vs. Albertsons Companies | Global Net vs. Contextlogic |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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