Correlation Between Movano and Ainos

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

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

Diversification Opportunities for Movano and Ainos

0.34

Correlation Coefficient

Movano  Ainos

Weak diversification

The 3 months correlation between Movano and Ainos is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Movano Inc and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and Movano 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 Movano 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 Movano i.e., Movano and Ainos go up and down completely randomly.

Pair Corralation between Movano and Ainos

Given the investment horizon of 90 days Movano Inc is expected to generate 1.55 times more return on investment than Ainos. However, Movano is 1.55 times more volatile than Ainos Inc. It trades about 0.08 of its potential returns per unit of risk. Ainos Inc is currently generating about -0.05 per unit of risk. If you would invest  449.00  in Movano Inc on August 31, 2024 and sell it today you would earn a total of  115.00  from holding Movano Inc or generate 25.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Movano Inc  vs.  Ainos Inc

Movano Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Movano Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, Movano exhibited 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 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.

Pair Trading with Movano and Ainos

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

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.