Correlation Between Novacyt SA and Aethlon Medical
Can any of the company-specific risk be diversified away by investing in both Novacyt SA 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 Novacyt SA and Aethlon Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Novacyt SA and Aethlon Medical, you can compare the effects of market volatilities on Novacyt SA 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 Novacyt SA with a short position of Aethlon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Novacyt SA and Aethlon Medical.
Diversification Opportunities for Novacyt SA and Aethlon Medical
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Novacyt and Aethlon is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Novacyt SA and Aethlon Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aethlon Medical and Novacyt SA 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 Novacyt SA 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 Novacyt SA i.e., Novacyt SA and Aethlon Medical go up and down completely randomly.
Pair Corralation between Novacyt SA and Aethlon Medical
Assuming the 90 days horizon Novacyt SA is expected to generate 0.93 times more return on investment than Aethlon Medical. However, Novacyt SA is 1.08 times less risky than Aethlon Medical. It trades about 0.03 of its potential returns per unit of risk. Aethlon Medical is currently generating about 0.0 per unit of risk. If you would invest 82.00 in Novacyt SA on September 19, 2024 and sell it today you would lose (12.00) from holding Novacyt SA or give up 14.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Novacyt SA vs. Aethlon Medical
Performance |
| Timeline |
| Novacyt SA |
| Aethlon Medical |
Novacyt SA and Aethlon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Novacyt SA and Aethlon Medical
The main advantage of trading using opposite Novacyt SA and Aethlon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Novacyt SA 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.| Novacyt SA vs. Aethlon Medical | Novacyt SA vs. Bone Biologics Corp | Novacyt SA vs. Tivic Health Systems | Novacyt SA vs. Cytosorbents Crp |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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