Correlation Between NYSE Composite and Aethlon Medical
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Aethlon Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Aethlon Medical, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Aethlon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Aethlon Medical.
Diversification Opportunities for NYSE Composite and Aethlon Medical
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Aethlon is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Aethlon Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aethlon Medical and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Aethlon Medical go up and down completely randomly.
Pair Corralation between NYSE Composite and Aethlon Medical
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.1 times more return on investment than Aethlon Medical. However, NYSE Composite is 10.08 times less risky than Aethlon Medical. It trades about 0.1 of its potential returns per unit of risk. Aethlon Medical is currently generating about -0.02 per unit of risk. If you would invest 1,799,569 in NYSE Composite on September 19, 2024 and sell it today you would earn a total of 152,192 from holding NYSE Composite or generate 8.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Aethlon Medical
Performance |
| Timeline |
NYSE Composite and Aethlon Medical Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Aethlon Medical
Pair trading matchups for Aethlon Medical
Pair Trading with NYSE Composite and Aethlon Medical
The main advantage of trading using opposite NYSE Composite and Aethlon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Chipotle Mexican Grill | NYSE Composite vs. Cracker Barrel Old | NYSE Composite vs. Shake Shack | NYSE Composite vs. Integral Ad Science |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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