Correlation Between Predictive Oncology and Avinger
Can any of the company-specific risk be diversified away by investing in both Predictive Oncology and Avinger 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 Predictive Oncology and Avinger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Predictive Oncology and Avinger, you can compare the effects of market volatilities on Predictive Oncology and Avinger 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 Predictive Oncology with a short position of Avinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Predictive Oncology and Avinger.
Diversification Opportunities for Predictive Oncology and Avinger
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Predictive and Avinger is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Predictive Oncology and Avinger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avinger and Predictive Oncology 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 Predictive Oncology are associated (or correlated) with Avinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avinger has no effect on the direction of Predictive Oncology i.e., Predictive Oncology and Avinger go up and down completely randomly.
Pair Corralation between Predictive Oncology and Avinger
Given the investment horizon of 90 days Predictive Oncology is expected to generate 1.53 times more return on investment than Avinger. However, Predictive Oncology is 1.53 times more volatile than Avinger. It trades about -0.01 of its potential returns per unit of risk. Avinger is currently generating about -0.09 per unit of risk. If you would invest 143.00 in Predictive Oncology on August 29, 2024 and sell it today you would lose (65.00) from holding Predictive Oncology or give up 45.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Predictive Oncology vs. Avinger
Performance |
| Timeline |
| Predictive Oncology |
| Avinger |
Predictive Oncology and Avinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Predictive Oncology and Avinger
The main advantage of trading using opposite Predictive Oncology and Avinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Predictive Oncology position performs unexpectedly, Avinger 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 Avinger will offset losses from the drop in Avinger's long position.| Predictive Oncology vs. GlucoTrack | Predictive Oncology vs. Sharps Technology | Predictive Oncology vs. Microbot Medical | Predictive Oncology vs. Nexgel Inc |
| Avinger vs. GlucoTrack | Avinger vs. Nexgel Inc | Avinger vs. Sharps Technology | Avinger vs. Innovative Eyewear |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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