Correlation Between Ainos and Adm Tronics

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

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

Diversification Opportunities for Ainos and Adm Tronics

0.68

Correlation Coefficient

Ainos  Adm Tronics

Poor diversification

The 3 months correlation between Ainos and Adm is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ainos Inc and Adm Tronics Unltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adm Tronics Unltd 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 Adm Tronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adm Tronics Unltd has no effect on the direction of Ainos i.e., Ainos and Adm Tronics go up and down completely randomly.

Pair Corralation between Ainos and Adm Tronics

If you would invest  0.00  in Ainos Inc on October 22, 2024 and sell it today you would earn a total of  12.00  from holding Ainos Inc or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	2.33%
Values	Daily Returns

Ainos Inc  vs.  Adm Tronics Unltd

Ainos Inc

Risk-Adjusted Performance

23 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Ainos Inc are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, Ainos showed solid returns over the last few months and may actually be approaching a breakup point.

Adm Tronics Unltd

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Ainos and Adm Tronics

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

The idea behind Ainos Inc and Adm Tronics Unltd 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.