Correlation Between Certara and Aclarion

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

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

Diversification Opportunities for Certara and Aclarion

0.4

Correlation Coefficient

Certara  Aclarion

Very weak diversification

The 3 months correlation between Certara and Aclarion is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Certara and Aclarion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aclarion and Certara 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 Certara are associated (or correlated) with Aclarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aclarion has no effect on the direction of Certara i.e., Certara and Aclarion go up and down completely randomly.

Pair Corralation between Certara and Aclarion

Given the investment horizon of 90 days Certara is expected to under-perform the Aclarion. But the stock apears to be less risky and, when comparing its historical volatility, Certara is 2.33 times less risky than Aclarion. The stock trades about -0.01 of its potential returns per unit of risk. The Aclarion is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  19.00  in Aclarion on August 31, 2024 and sell it today you would lose (1.00) from holding Aclarion or give up 5.26% of portfolio value over 90 days.

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

Certara  vs.  Aclarion

Certara

Risk-Adjusted Performance

0 of 100

Very Weak

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

Aclarion

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aclarion are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Aclarion may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Certara and Aclarion

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

The idea behind Certara and Aclarion 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.