Correlation Between AETNA and Femasys
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By analyzing existing cross correlation between AETNA INC NEW and Femasys, you can compare the effects of market volatilities on AETNA and Femasys 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 AETNA with a short position of Femasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of AETNA and Femasys.
Diversification Opportunities for AETNA and Femasys
Very weak diversification
The 3 months correlation between AETNA and Femasys is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding AETNA INC NEW and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys and AETNA 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 AETNA INC NEW are associated (or correlated) with Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of AETNA i.e., AETNA and Femasys go up and down completely randomly.
Pair Corralation between AETNA and Femasys
Assuming the 90 days trading horizon AETNA INC NEW is expected to generate 0.06 times more return on investment than Femasys. However, AETNA INC NEW is 17.4 times less risky than Femasys. It trades about -0.18 of its potential returns per unit of risk. Femasys is currently generating about -0.16 per unit of risk. If you would invest 9,991 in AETNA INC NEW on August 28, 2024 and sell it today you would lose (65.00) from holding AETNA INC NEW or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
AETNA INC NEW vs. Femasys
Performance |
| Timeline |
| AETNA INC NEW |
| Femasys |
AETNA and Femasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AETNA and Femasys
The main advantage of trading using opposite AETNA and Femasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AETNA position performs unexpectedly, Femasys 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 Femasys will offset losses from the drop in Femasys' long position.The idea behind AETNA INC NEW and Femasys pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Femasys vs. Heartbeam | Femasys vs. EUDA Health Holdings | Femasys vs. Nutex Health | Femasys vs. Healthcare Triangle |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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