Correlation Between PAVmed Series and Beyond Air

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

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

Diversification Opportunities for PAVmed Series and Beyond Air

-0.04

Correlation Coefficient

PAVmed Series  Beyond Air

Good diversification

The 3 months correlation between PAVmed and Beyond is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding PAVmed Series Z and Beyond Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Air and PAVmed Series 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 PAVmed Series Z are associated (or correlated) with Beyond Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Air has no effect on the direction of PAVmed Series i.e., PAVmed Series and Beyond Air go up and down completely randomly.

Pair Corralation between PAVmed Series and Beyond Air

Assuming the 90 days horizon PAVmed Series Z is expected to generate 4.76 times more return on investment than Beyond Air. However, PAVmed Series is 4.76 times more volatile than Beyond Air. It trades about 0.15 of its potential returns per unit of risk. Beyond Air is currently generating about -0.02 per unit of risk. If you would invest  2.75  in PAVmed Series Z on September 17, 2024 and sell it today you would earn a total of  0.13  from holding PAVmed Series Z or generate 4.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	55.0%
Values	Daily Returns

PAVmed Series Z  vs.  Beyond Air

PAVmed Series Z

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in PAVmed Series Z are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, PAVmed Series showed solid returns over the last few months and may actually be approaching a breakup point.

Beyond Air

Risk-Adjusted Performance

6 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Beyond Air are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady forward indicators, Beyond Air reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PAVmed Series and Beyond Air

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

The idea behind PAVmed Series Z and Beyond Air 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..