Correlation Between Apyx Medical and Ainos

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

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

Diversification Opportunities for Apyx Medical and Ainos

-0.52

Correlation Coefficient

Apyx Medical  Ainos

Excellent diversification

The 3 months correlation between Apyx and Ainos is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and Apyx Medical 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 Apyx Medical 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 Apyx Medical i.e., Apyx Medical and Ainos go up and down completely randomly.

Pair Corralation between Apyx Medical and Ainos

Given the investment horizon of 90 days Apyx Medical is expected to generate 1.19 times more return on investment than Ainos. However, Apyx Medical is 1.19 times more volatile than Ainos Inc. It trades about 0.14 of its potential returns per unit of risk. Ainos Inc is currently generating about -0.01 per unit of risk. If you would invest  107.00  in Apyx Medical on September 16, 2024 and sell it today you would earn a total of  61.00  from holding Apyx Medical or generate 57.01% return on investment over 90 days.

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

Apyx Medical  vs.  Ainos Inc

Apyx Medical

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apyx Medical are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Apyx Medical showed solid returns over the last few months and may actually be approaching a breakup point.

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 rather sound primary indicators, Ainos is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Apyx Medical and Ainos

The main advantage of trading using opposite Apyx Medical and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical 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.

The idea behind Apyx Medical and Ainos Inc 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.