Correlation Between CVRx and Ainos

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

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

Diversification Opportunities for CVRx and Ainos

-0.57

Correlation Coefficient

CVRx  Ainos

Excellent diversification

The 3 months correlation between CVRx and Ainos is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding CVRx Inc and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and CVRx 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 CVRx Inc 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 CVRx i.e., CVRx and Ainos go up and down completely randomly.

Pair Corralation between CVRx and Ainos

Given the investment horizon of 90 days CVRx Inc is expected to generate 1.12 times more return on investment than Ainos. However, CVRx is 1.12 times more volatile than Ainos Inc. It trades about 0.16 of its potential returns per unit of risk. Ainos Inc is currently generating about -0.01 per unit of risk. If you would invest  768.00  in CVRx Inc on September 15, 2024 and sell it today you would earn a total of  515.00  from holding CVRx Inc or generate 67.06% return on investment over 90 days.

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

CVRx Inc  vs.  Ainos Inc

CVRx Inc

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CVRx Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, CVRx 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 CVRx and Ainos

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

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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.