Correlation Between Aethlon Medical and KEYCORP

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

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

Diversification Opportunities for Aethlon Medical and KEYCORP

-0.39

Correlation Coefficient

Aethlon Medical  KEYCORP

Very good diversification

The 3 months correlation between Aethlon and KEYCORP is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Aethlon Medical and KEYCORP MTN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYCORP MTN 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 KEYCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEYCORP MTN has no effect on the direction of Aethlon Medical i.e., Aethlon Medical and KEYCORP go up and down completely randomly.

Pair Corralation between Aethlon Medical and KEYCORP

Given the investment horizon of 90 days Aethlon Medical is expected to generate 12.09 times more return on investment than KEYCORP. However, Aethlon Medical is 12.09 times more volatile than KEYCORP MTN. It trades about 0.16 of its potential returns per unit of risk. KEYCORP MTN is currently generating about -0.12 per unit of risk. If you would invest  39.00  in Aethlon Medical on October 9, 2024 and sell it today you would earn a total of  52.00  from holding Aethlon Medical or generate 133.33% return on investment over 90 days.

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

Aethlon Medical  vs.  KEYCORP MTN

Aethlon Medical

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aethlon Medical are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, Aethlon Medical exhibited solid returns over the last few months and may actually be approaching a breakup point.

KEYCORP MTN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KEYCORP MTN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for KEYCORP MTN investors.

Pair Trading with Aethlon Medical and KEYCORP

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

The idea behind Aethlon Medical and KEYCORP MTN 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.