Correlation Between STRATA Skin and Ainos
Can any of the company-specific risk be diversified away by investing in both STRATA Skin 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 STRATA Skin and Ainos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STRATA Skin Sciences and Ainos Inc, you can compare the effects of market volatilities on STRATA Skin 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 STRATA Skin with a short position of Ainos. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRATA Skin and Ainos.
Diversification Opportunities for STRATA Skin and Ainos
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between STRATA and Ainos is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding STRATA Skin Sciences and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and STRATA Skin 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 STRATA Skin Sciences 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 STRATA Skin i.e., STRATA Skin and Ainos go up and down completely randomly.
Pair Corralation between STRATA Skin and Ainos
Given the investment horizon of 90 days STRATA Skin Sciences is expected to generate 0.6 times more return on investment than Ainos. However, STRATA Skin Sciences is 1.67 times less risky than Ainos. It trades about -0.02 of its potential returns per unit of risk. Ainos Inc is currently generating about -0.04 per unit of risk. If you would invest 589.00 in STRATA Skin Sciences on June 28, 2024 and sell it today you would lose (269.00) from holding STRATA Skin Sciences or give up 45.67% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
STRATA Skin Sciences vs. Ainos Inc
Performance |
Timeline |
STRATA Skin Sciences |
Ainos Inc |
STRATA Skin and Ainos Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with STRATA Skin and Ainos
The main advantage of trading using opposite STRATA Skin and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRATA Skin 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.STRATA Skin vs. Axogen Inc | STRATA Skin vs. Ainos Inc | STRATA Skin vs. LENSAR Inc | STRATA Skin vs. Nexalin Technology |
Check out your portfolio center.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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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