Correlation Between Aethlon Medical and PACIFIC

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

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

Diversification Opportunities for Aethlon Medical and PACIFIC

-0.52

Correlation Coefficient

Aethlon Medical  PACIFIC

Excellent diversification

The 3 months correlation between Aethlon and PACIFIC is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aethlon Medical and PACIFIC GAS AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS AND 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS AND has no effect on the direction of Aethlon Medical i.e., Aethlon Medical and PACIFIC go up and down completely randomly.

Pair Corralation between Aethlon Medical and PACIFIC

Given the investment horizon of 90 days Aethlon Medical is expected to generate 34.3 times more return on investment than PACIFIC. However, Aethlon Medical is 34.3 times more volatile than PACIFIC GAS AND. It trades about 0.28 of its potential returns per unit of risk. PACIFIC GAS AND is currently generating about -0.57 per unit of risk. If you would invest  38.00  in Aethlon Medical on October 9, 2024 and sell it today you would earn a total of  48.00  from holding Aethlon Medical or generate 126.32% return on investment over 90 days.

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

Aethlon Medical  vs.  PACIFIC GAS AND

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.

PACIFIC GAS AND

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PACIFIC GAS AND has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, PACIFIC is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aethlon Medical and PACIFIC

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

The idea behind Aethlon Medical and PACIFIC GAS AND 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.

Check out your portfolio center.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.