Correlation Between Actinogen Medical and Dug Technology

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

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

Diversification Opportunities for Actinogen Medical and Dug Technology

-0.08

Correlation Coefficient

Actinogen Medical  Dug Technology

Good diversification

The 3 months correlation between Actinogen and Dug is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Dug Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dug Technology and Actinogen 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 Actinogen Medical are associated (or correlated) with Dug Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dug Technology has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and Dug Technology go up and down completely randomly.

Pair Corralation between Actinogen Medical and Dug Technology

Assuming the 90 days trading horizon Actinogen Medical is expected to generate 4.53 times less return on investment than Dug Technology. In addition to that, Actinogen Medical is 2.63 times more volatile than Dug Technology. It trades about 0.01 of its total potential returns per unit of risk. Dug Technology is currently generating about 0.06 per unit of volatility. If you would invest  66.00  in Dug Technology on October 10, 2024 and sell it today you would earn a total of  63.00  from holding Dug Technology or generate 95.45% return on investment over 90 days.

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

Actinogen Medical  vs.  Dug Technology

Actinogen Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Actinogen Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Actinogen Medical is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Dug Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dug Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Actinogen Medical and Dug Technology

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

The idea behind Actinogen Medical and Dug Technology 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.