Correlation Between Ainos and CareCloud

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

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

Diversification Opportunities for Ainos and CareCloud

-0.64

Correlation Coefficient

Ainos  CareCloud

Excellent diversification

The 3 months correlation between Ainos and CareCloud is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ainos Inc and CareCloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareCloud 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 CareCloud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareCloud has no effect on the direction of Ainos i.e., Ainos and CareCloud go up and down completely randomly.

Pair Corralation between Ainos and CareCloud

Given the investment horizon of 90 days Ainos is expected to generate 8.65 times less return on investment than CareCloud. But when comparing it to its historical volatility, Ainos Inc is 1.42 times less risky than CareCloud. It trades about 0.04 of its potential returns per unit of risk. CareCloud is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  1,192  in CareCloud on September 2, 2024 and sell it today you would earn a total of  499.00  from holding CareCloud or generate 41.86% return on investment over 90 days.

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

Ainos Inc  vs.  CareCloud

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 January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

CareCloud

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CareCloud are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental indicators, CareCloud reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ainos and CareCloud

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

The idea behind Ainos Inc and CareCloud 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..