Correlation Between Avinger and Predictive Oncology

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

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

Diversification Opportunities for Avinger and Predictive Oncology

0.01

Correlation Coefficient

Avinger  Predictive Oncology

Significant diversification

The 3 months correlation between Avinger and Predictive is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Avinger and Predictive Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Predictive Oncology and Avinger 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 Avinger are associated (or correlated) with Predictive Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Predictive Oncology has no effect on the direction of Avinger i.e., Avinger and Predictive Oncology go up and down completely randomly.

Pair Corralation between Avinger and Predictive Oncology

Given the investment horizon of 90 days Avinger is expected to under-perform the Predictive Oncology. In addition to that, Avinger is 1.07 times more volatile than Predictive Oncology. It trades about -0.06 of its total potential returns per unit of risk. Predictive Oncology is currently generating about 0.11 per unit of volatility. If you would invest  90.00  in Predictive Oncology on December 30, 2024 and sell it today you would earn a total of  55.00  from holding Predictive Oncology or generate 61.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	53.23%
Values	Daily Returns

Avinger  vs.  Predictive Oncology

Avinger

Risk-Adjusted Performance

Very Weak

Over the last 90 days Avinger has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Predictive Oncology

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Predictive Oncology are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting basic indicators, Predictive Oncology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Avinger and Predictive Oncology

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

The idea behind Avinger and Predictive Oncology 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.