Correlation Between Sensus Healthcare and Ainos
Can any of the company-specific risk be diversified away by investing in both Sensus Healthcare 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 Sensus Healthcare and Ainos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sensus Healthcare and Ainos Inc, you can compare the effects of market volatilities on Sensus Healthcare 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 Sensus Healthcare with a short position of Ainos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensus Healthcare and Ainos.
Diversification Opportunities for Sensus Healthcare and Ainos
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sensus and Ainos is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sensus Healthcare and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and Sensus Healthcare 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 Sensus Healthcare 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 Sensus Healthcare i.e., Sensus Healthcare and Ainos go up and down completely randomly.
Pair Corralation between Sensus Healthcare and Ainos
Given the investment horizon of 90 days Sensus Healthcare is expected to generate 0.61 times more return on investment than Ainos. However, Sensus Healthcare is 1.63 times less risky than Ainos. It trades about 0.11 of its potential returns per unit of risk. Ainos Inc is currently generating about -0.05 per unit of risk. If you would invest 550.00 in Sensus Healthcare on September 2, 2024 and sell it today you would earn a total of 301.00 from holding Sensus Healthcare or generate 54.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sensus Healthcare vs. Ainos Inc
Performance |
| Timeline |
| Sensus Healthcare |
| Ainos Inc |
Sensus Healthcare and Ainos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sensus Healthcare and Ainos
The main advantage of trading using opposite Sensus Healthcare and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensus Healthcare 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.| Sensus Healthcare vs. Ainos Inc | Sensus Healthcare vs. SurModics | Sensus Healthcare vs. LENSAR Inc | Sensus Healthcare vs. IRIDEX |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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