Correlation Between Bone Biologics and Ainos

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

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

Diversification Opportunities for Bone Biologics and Ainos

0.33

Correlation Coefficient

Bone Biologics  Ainos

Weak diversification

The 3 months correlation between Bone and Ainos is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bone Biologics Corp and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and Bone Biologics 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 Bone Biologics Corp 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 Bone Biologics i.e., Bone Biologics and Ainos go up and down completely randomly.

Pair Corralation between Bone Biologics and Ainos

Assuming the 90 days horizon Bone Biologics is expected to generate 7.22 times less return on investment than Ainos. But when comparing it to its historical volatility, Bone Biologics Corp is 2.03 times less risky than Ainos. It trades about 0.05 of its potential returns per unit of risk. Ainos Inc is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  4.97  in Ainos Inc on December 28, 2024 and sell it today you would earn a total of  5.03  from holding Ainos Inc or generate 101.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	65.22%
Values	Daily Returns

Bone Biologics Corp  vs.  Ainos Inc

Bone Biologics Corp

Risk-Adjusted Performance

Insignificant

Over the last 90 days Bone Biologics Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly fragile technical and fundamental indicators, Bone Biologics showed solid returns over the last few months and may actually be approaching a breakup point.

Ainos Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ainos Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, Ainos showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bone Biologics and Ainos

The main advantage of trading using opposite Bone Biologics and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bone Biologics 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 Bone Biologics Corp 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.