Correlation Between Aclarion and Healixa

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

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

Diversification Opportunities for Aclarion and Healixa

0.09

Correlation Coefficient

Aclarion  Healixa

Significant diversification

The 3 months correlation between Aclarion and Healixa is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Aclarion and Healixa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healixa and Aclarion 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 Aclarion are associated (or correlated) with Healixa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healixa has no effect on the direction of Aclarion i.e., Aclarion and Healixa go up and down completely randomly.

Pair Corralation between Aclarion and Healixa

Given the investment horizon of 90 days Aclarion is expected to under-perform the Healixa. But the stock apears to be less risky and, when comparing its historical volatility, Aclarion is 1.62 times less risky than Healixa. The stock trades about -0.06 of its potential returns per unit of risk. The Healixa is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  9.00  in Healixa on September 14, 2024 and sell it today you would lose (2.90) from holding Healixa or give up 32.22% of portfolio value over 90 days.

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

Aclarion  vs.  Healixa

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 weak 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.

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 abnormal basic indicators, Healixa may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Aclarion and Healixa

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

The idea behind Aclarion and Healixa 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.