Correlation Between Serina Therapeutics and AMCON Distributing

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

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

Diversification Opportunities for Serina Therapeutics and AMCON Distributing

0.3

Correlation Coefficient

Serina Therapeutics  AMCON Distributing

Weak diversification

The 3 months correlation between Serina and AMCON is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Serina Therapeutics and AMCON Distributing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMCON Distributing and Serina Therapeutics 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 Serina Therapeutics are associated (or correlated) with AMCON Distributing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMCON Distributing has no effect on the direction of Serina Therapeutics i.e., Serina Therapeutics and AMCON Distributing go up and down completely randomly.

Pair Corralation between Serina Therapeutics and AMCON Distributing

Considering the 90-day investment horizon Serina Therapeutics is expected to under-perform the AMCON Distributing. In addition to that, Serina Therapeutics is 2.21 times more volatile than AMCON Distributing. It trades about -0.01 of its total potential returns per unit of risk. AMCON Distributing is currently generating about 0.0 per unit of volatility. If you would invest  17,878  in AMCON Distributing on October 3, 2024 and sell it today you would lose (4,704) from holding AMCON Distributing or give up 26.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.79%
Values	Daily Returns

Serina Therapeutics  vs.  AMCON Distributing

Serina Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Serina Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

AMCON Distributing

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Serina Therapeutics and AMCON Distributing

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

The idea behind Serina Therapeutics and AMCON Distributing 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.