Correlation Between Ainos and Aspira Womens

Can any of the company-specific risk be diversified away by investing in both Ainos and Aspira Womens 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 Ainos and Aspira Womens into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ainos Inc and Aspira Womens Health, you can compare the effects of market volatilities on Ainos and Aspira Womens 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 Ainos with a short position of Aspira Womens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainos and Aspira Womens.

Diversification Opportunities for Ainos and Aspira Womens

0.77

Correlation Coefficient

Ainos  Aspira Womens

Poor diversification

The 3 months correlation between Ainos and Aspira is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ainos Inc and Aspira Womens Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspira Womens Health and Ainos 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 Ainos Inc are associated (or correlated) with Aspira Womens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspira Womens Health has no effect on the direction of Ainos i.e., Ainos and Aspira Womens go up and down completely randomly.

Pair Corralation between Ainos and Aspira Womens

Given the investment horizon of 90 days Ainos Inc is expected to under-perform the Aspira Womens. In addition to that, Ainos is 1.35 times more volatile than Aspira Womens Health. It trades about -0.02 of its total potential returns per unit of risk. Aspira Womens Health is currently generating about -0.02 per unit of volatility. If you would invest  291.00  in Aspira Womens Health on August 31, 2024 and sell it today you would lose (202.00) from holding Aspira Womens Health or give up 69.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Ainos Inc  vs.  Aspira Womens Health

Ainos Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ainos Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Aspira Womens Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aspira Womens Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Aspira Womens is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Ainos and Aspira Womens

The main advantage of trading using opposite Ainos and Aspira Womens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainos position performs unexpectedly, Aspira Womens 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 Aspira Womens will offset losses from the drop in Aspira Womens' long position.

The idea behind Ainos Inc and Aspira Womens Health 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.