Correlation Between Chemours and Ainos

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

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

Diversification Opportunities for Chemours and Ainos

-0.32

Correlation Coefficient

Chemours  Ainos

Very good diversification

The 3 months correlation between Chemours and Ainos is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and Chemours 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 Chemours Co 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 Chemours i.e., Chemours and Ainos go up and down completely randomly.

Pair Corralation between Chemours and Ainos

Allowing for the 90-day total investment horizon Chemours Co is expected to under-perform the Ainos. But the stock apears to be less risky and, when comparing its historical volatility, Chemours Co is 26.74 times less risky than Ainos. The stock trades about -0.56 of its potential returns per unit of risk. The Ainos Inc is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest  5.11  in Ainos Inc on October 8, 2024 and sell it today you would earn a total of  8.89  from holding Ainos Inc or generate 173.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	52.63%
Values	Daily Returns

Chemours Co  vs.  Ainos Inc

Chemours

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chemours Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Ainos Inc

Risk-Adjusted Performance

22 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ainos Inc are ranked lower than 22 (%) 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 Chemours and Ainos

The main advantage of trading using opposite Chemours and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours 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 Chemours Co 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.