Correlation Between Ainos and Lifestance Health

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

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

Diversification Opportunities for Ainos and Lifestance Health

0.59

Correlation Coefficient

Ainos  Lifestance Health

Very weak diversification

The 3 months correlation between Ainos and Lifestance is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ainos Inc and Lifestance Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifestance Health 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 Lifestance Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifestance Health has no effect on the direction of Ainos i.e., Ainos and Lifestance Health go up and down completely randomly.

Pair Corralation between Ainos and Lifestance Health

Given the investment horizon of 90 days Ainos Inc is expected to generate 5.7 times more return on investment than Lifestance Health. However, Ainos is 5.7 times more volatile than Lifestance Health Group. It trades about 0.06 of its potential returns per unit of risk. Lifestance Health Group is currently generating about -0.08 per unit of risk. If you would invest  45.00  in Ainos Inc on December 29, 2024 and sell it today you would earn a total of  6.00  from holding Ainos Inc or generate 13.33% 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.  Lifestance Health Group

Ainos Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ainos Inc are ranked lower than 5 (%) 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.

Lifestance Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lifestance Health Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Ainos and Lifestance Health

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

The idea behind Ainos Inc and Lifestance Health Group 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.