Correlation Between Ainos and Sonova Holding
Can any of the company-specific risk be diversified away by investing in both Ainos and Sonova Holding 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 Ainos and Sonova Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainos Inc and Sonova Holding AG, you can compare the effects of market volatilities on Ainos and Sonova Holding 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 Ainos with a short position of Sonova Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainos and Sonova Holding.
Diversification Opportunities for Ainos and Sonova Holding
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ainos and Sonova is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ainos Inc and Sonova Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonova Holding AG and Ainos 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 Ainos Inc are associated (or correlated) with Sonova Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonova Holding AG has no effect on the direction of Ainos i.e., Ainos and Sonova Holding go up and down completely randomly.
Pair Corralation between Ainos and Sonova Holding
Assuming the 90 days horizon Ainos Inc is expected to under-perform the Sonova Holding. In addition to that, Ainos is 12.58 times more volatile than Sonova Holding AG. It trades about -0.06 of its total potential returns per unit of risk. Sonova Holding AG is currently generating about 0.23 per unit of volatility. If you would invest 28,170 in Sonova Holding AG on February 15, 2024 and sell it today you would earn a total of 3,979 from holding Sonova Holding AG or generate 14.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 40.91% |
Values | Daily Returns |
Ainos Inc vs. Sonova Holding AG
Performance |
Timeline |
Ainos Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Sonova Holding AG |
Ainos and Sonova Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ainos and Sonova Holding
The main advantage of trading using opposite Ainos and Sonova Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainos position performs unexpectedly, Sonova Holding 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 Sonova Holding will offset losses from the drop in Sonova Holding's long position.The idea behind Ainos Inc and Sonova Holding AG 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.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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Stocks Directory Find actively traded stocks across global markets | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |