Correlation Between Ainos and Bioventus

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

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

Diversification Opportunities for Ainos and Bioventus

0.44

Correlation Coefficient

Ainos  Bioventus

Very weak diversification

The 3 months correlation between Ainos and Bioventus is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ainos Inc and Bioventus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioventus and Ainos 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 Ainos Inc are associated (or correlated) with Bioventus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioventus has no effect on the direction of Ainos i.e., Ainos and Bioventus go up and down completely randomly.

Pair Corralation between Ainos and Bioventus

Given the investment horizon of 90 days Ainos Inc is expected to under-perform the Bioventus. In addition to that, Ainos is 1.55 times more volatile than Bioventus. It trades about -0.01 of its total potential returns per unit of risk. Bioventus is currently generating about 0.08 per unit of volatility. If you would invest  240.00  in Bioventus on October 7, 2024 and sell it today you would earn a total of  804.00  from holding Bioventus or generate 335.0% return on investment over 90 days.

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

Ainos Inc  vs.  Bioventus

Ainos Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ainos Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating primary indicators, Ainos exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bioventus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bioventus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Bioventus is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Ainos and Bioventus

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

The idea behind Ainos Inc and Bioventus 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 Transaction History module to view history of all your transactions and understand their impact on performance.