Correlation Between Acutus Medical and Aethlon Medical

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

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

Diversification Opportunities for Acutus Medical and Aethlon Medical

0.0

Correlation Coefficient

Acutus Medical  Aethlon Medical

Pay attention - limited upside

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

Pair Corralation between Acutus Medical and Aethlon Medical

If you would invest (100.00) in Acutus Medical on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Acutus Medical 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

Acutus Medical  vs.  Aethlon Medical

Acutus Medical

Risk-Adjusted Performance

Very Weak

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

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.

Pair Trading with Acutus Medical and Aethlon Medical

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

The idea behind Acutus Medical and Aethlon Medical 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.