Correlation Between Aimei Health and Cars

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

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

Diversification Opportunities for Aimei Health and Cars

-0.75

Correlation Coefficient

Aimei Health  Cars

Pay attention - limited upside

The 3 months correlation between Aimei and Cars is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Aimei Health Technology and Cars Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cars Inc and Aimei Health 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 Aimei Health Technology are associated (or correlated) with Cars. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cars Inc has no effect on the direction of Aimei Health i.e., Aimei Health and Cars go up and down completely randomly.

Pair Corralation between Aimei Health and Cars

Given the investment horizon of 90 days Aimei Health Technology is expected to generate 0.11 times more return on investment than Cars. However, Aimei Health Technology is 8.94 times less risky than Cars. It trades about 0.14 of its potential returns per unit of risk. Cars Inc is currently generating about -0.13 per unit of risk. If you would invest  1,061  in Aimei Health Technology on December 27, 2024 and sell it today you would earn a total of  39.00  from holding Aimei Health Technology or generate 3.68% return on investment over 90 days.

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

Aimei Health Technology  vs.  Cars Inc

Aimei Health Technology

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aimei Health Technology are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking indicators, Aimei Health is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Cars Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cars Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Aimei Health and Cars

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

The idea behind Aimei Health Technology and Cars 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.