diversifiable risk of combining DiaMedica Therapeutics and Aditxt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DiaMedica Therapeutics and Aditxt Inc, you can compare the effects of market volatilities on DiaMedica Therapeutics and Aditxt 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 DiaMedica Therapeutics with a short position of Aditxt. Check out your portfolio center. Please also check ongoing floating volatility patterns of DiaMedica Therapeutics and Aditxt.
Diversification Opportunities for DiaMedica Therapeutics and Aditxt
Pair Corralation between DiaMedica Therapeutics and Aditxt
Given the investment horizon of 90 days DiaMedica Therapeutics is expected to generate 1.13 times more return on investment than Aditxt. However, DiaMedica Therapeutics is 1.13 times more volatile than Aditxt Inc. It trades about 0.11 of its potential returns per unit of risk. Aditxt Inc is currently generating about -0.22 per unit of risk. If you would invest 264.00 in DiaMedica Therapeutics on November 28, 2023 and sell it today you would earn a total of 19.00 from holding DiaMedica Therapeutics or generate 7.2% return on investment over 90 days.
DiaMedica Therapeutics vs. Aditxt Inc
DiaMedica Therapeutics and Aditxt Volatility Contrast
Pair Trading with DiaMedica Therapeutics and AditxtThe main advantage of trading using opposite DiaMedica Therapeutics and Aditxt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DiaMedica Therapeutics position performs unexpectedly, Aditxt 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 Aditxt will offset losses from the drop in Aditxt's long position. The idea behind DiaMedica Therapeutics and Aditxt Inc 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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