Correlation Between Healixa and Aclarion

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

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

Diversification Opportunities for Healixa and Aclarion

0.11

Correlation Coefficient

Healixa  Aclarion

Average diversification

The 3 months correlation between Healixa and Aclarion is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Healixa and Aclarion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aclarion and Healixa 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 Healixa are associated (or correlated) with Aclarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aclarion has no effect on the direction of Healixa i.e., Healixa and Aclarion go up and down completely randomly.

Pair Corralation between Healixa and Aclarion

Given the investment horizon of 90 days Healixa is expected to generate 1.63 times more return on investment than Aclarion. However, Healixa is 1.63 times more volatile than Aclarion. It trades about 0.01 of its potential returns per unit of risk. Aclarion is currently generating about -0.06 per unit of risk. If you would invest  9.00  in Healixa on September 17, 2024 and sell it today you would lose (3.00) from holding Healixa or give up 33.33% of portfolio value over 90 days.

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

Healixa  vs.  Aclarion

Healixa

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Healixa has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Healixa is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Aclarion

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aclarion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Healixa and Aclarion

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

The idea behind Healixa and Aclarion 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.