Correlation Between Heart Test and Aethlon Medical
Can any of the company-specific risk be diversified away by investing in both Heart Test and Aethlon Medical 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 Heart Test and Aethlon Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heart Test Laboratories and Aethlon Medical, you can compare the effects of market volatilities on Heart Test and Aethlon Medical 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 Heart Test with a short position of Aethlon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heart Test and Aethlon Medical.
Diversification Opportunities for Heart Test and Aethlon Medical
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Heart and Aethlon is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Heart Test Laboratories and Aethlon Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aethlon Medical and Heart Test 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 Heart Test Laboratories are associated (or correlated) with Aethlon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aethlon Medical has no effect on the direction of Heart Test i.e., Heart Test and Aethlon Medical go up and down completely randomly.
Pair Corralation between Heart Test and Aethlon Medical
Given the investment horizon of 90 days Heart Test is expected to generate 2.76 times less return on investment than Aethlon Medical. But when comparing it to its historical volatility, Heart Test Laboratories is 2.54 times less risky than Aethlon Medical. It trades about 0.13 of its potential returns per unit of risk. Aethlon Medical is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Aethlon Medical on October 20, 2024 and sell it today you would earn a total of 27.00 from holding Aethlon Medical or generate 69.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heart Test Laboratories vs. Aethlon Medical
Performance |
| Timeline |
| Heart Test Laboratories |
| Aethlon Medical |
Heart Test and Aethlon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heart Test and Aethlon Medical
The main advantage of trading using opposite Heart Test and Aethlon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heart Test position performs unexpectedly, Aethlon Medical 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 Aethlon Medical will offset losses from the drop in Aethlon Medical's long position.| Heart Test vs. Tivic Health Systems | Heart Test vs. Bluejay Diagnostics | Heart Test vs. Nuwellis | Heart Test vs. NeuroMetrix |
| Aethlon Medical vs. Tivic Health Systems | Aethlon Medical vs. Bluejay Diagnostics | Aethlon Medical vs. Heart Test Laboratories | Aethlon Medical vs. Nuwellis |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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