Correlation Between Aethlon Medical and OpGen

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

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

Diversification Opportunities for Aethlon Medical and OpGen

0.0

Correlation Coefficient

Aethlon Medical  OpGen

Pay attention - limited upside

The 3 months correlation between Aethlon and OpGen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aethlon Medical and OpGen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OpGen Inc and Aethlon 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 Aethlon Medical are associated (or correlated) with OpGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OpGen Inc has no effect on the direction of Aethlon Medical i.e., Aethlon Medical and OpGen go up and down completely randomly.

Pair Corralation between Aethlon Medical and OpGen

If you would invest (100.00) in OpGen Inc on December 20, 2024 and sell it today you would earn a total of  100.00  from holding OpGen Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aethlon Medical  vs.  OpGen Inc

Aethlon Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aethlon Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

OpGen Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days OpGen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, OpGen is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Aethlon Medical and OpGen

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

The idea behind Aethlon Medical and OpGen 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.