Correlation Between Novacyt SA and Ainos
Can any of the company-specific risk be diversified away by investing in both Novacyt SA 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 Novacyt SA and Ainos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Novacyt SA and Ainos Inc, you can compare the effects of market volatilities on Novacyt SA 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 Novacyt SA with a short position of Ainos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Novacyt SA and Ainos.
Diversification Opportunities for Novacyt SA and Ainos
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Novacyt and Ainos is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Novacyt SA and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc 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 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 Novacyt SA i.e., Novacyt SA and Ainos go up and down completely randomly.
Pair Corralation between Novacyt SA and Ainos
Assuming the 90 days horizon Novacyt SA is expected to under-perform the Ainos. But the pink sheet apears to be less risky and, when comparing its historical volatility, Novacyt SA is 12.12 times less risky than Ainos. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Ainos Inc is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2.60 in Ainos Inc on November 6, 2024 and sell it today you would earn a total of 12.40 from holding Ainos Inc or generate 476.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 39.34% |
| Values | Daily Returns |
Novacyt SA vs. Ainos Inc
Performance |
| Timeline |
| Novacyt SA |
| Ainos Inc |
Novacyt SA and Ainos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Novacyt SA and Ainos
The main advantage of trading using opposite Novacyt SA and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Novacyt SA 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.| Novacyt SA vs. Aethlon Medical | Novacyt SA vs. Bone Biologics Corp | Novacyt SA vs. Tivic Health Systems | Novacyt SA vs. Cytosorbents Crp |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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