Correlation Between Aethlon Medical and KAISER

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

By analyzing existing cross correlation between Aethlon Medical and KAISER FNDTN HOSPS, you can compare the effects of market volatilities on Aethlon Medical and KAISER 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 KAISER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aethlon Medical and KAISER.

Diversification Opportunities for Aethlon Medical and KAISER

-0.64

Correlation Coefficient

Aethlon Medical  KAISER

Excellent diversification

The 3 months correlation between Aethlon and KAISER is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aethlon Medical and KAISER FNDTN HOSPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KAISER FNDTN HOSPS 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 KAISER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KAISER FNDTN HOSPS has no effect on the direction of Aethlon Medical i.e., Aethlon Medical and KAISER go up and down completely randomly.

Pair Corralation between Aethlon Medical and KAISER

Given the investment horizon of 90 days Aethlon Medical is expected to under-perform the KAISER. In addition to that, Aethlon Medical is 9.67 times more volatile than KAISER FNDTN HOSPS. It trades about -0.02 of its total potential returns per unit of risk. KAISER FNDTN HOSPS is currently generating about 0.1 per unit of volatility. If you would invest  8,186  in KAISER FNDTN HOSPS on December 23, 2024 and sell it today you would earn a total of  362.00  from holding KAISER FNDTN HOSPS or generate 4.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.08%
Values	Daily Returns

Aethlon Medical  vs.  KAISER FNDTN HOSPS

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 latest unsteady performance, the Stock's primary indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

KAISER FNDTN HOSPS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KAISER FNDTN HOSPS are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, KAISER is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aethlon Medical and KAISER

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

The idea behind Aethlon Medical and KAISER FNDTN HOSPS 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.