Correlation Between Accelerate Diagnostics and Ainos

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

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

Diversification Opportunities for Accelerate Diagnostics and Ainos

0.37

Correlation Coefficient

Accelerate Diagnostics  Ainos

Weak diversification

The 3 months correlation between Accelerate and Ainos is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Accelerate Diagnostics and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and Accelerate Diagnostics 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 Accelerate Diagnostics are associated (or correlated) with Ainos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainos Inc has no effect on the direction of Accelerate Diagnostics i.e., Accelerate Diagnostics and Ainos go up and down completely randomly.

Pair Corralation between Accelerate Diagnostics and Ainos

Given the investment horizon of 90 days Accelerate Diagnostics is expected to under-perform the Ainos. In addition to that, Accelerate Diagnostics is 1.14 times more volatile than Ainos Inc. It trades about -0.42 of its total potential returns per unit of risk. Ainos Inc is currently generating about 0.07 per unit of volatility. If you would invest  45.00  in Ainos Inc on September 26, 2024 and sell it today you would earn a total of  2.00  from holding Ainos Inc or generate 4.44% return on investment over 90 days.

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

Accelerate Diagnostics  vs.  Ainos Inc

Accelerate Diagnostics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Accelerate Diagnostics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Ainos Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ainos Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Ainos is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Accelerate Diagnostics and Ainos

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

The idea behind Accelerate Diagnostics and Ainos 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.