diversifiable risk of combining Hims Hers and Aditxt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hims Hers Health and Aditxt Inc, you can compare the effects of market volatilities on Hims Hers 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 Hims Hers with a short position of Aditxt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hims Hers and Aditxt.
Diversification Opportunities for Hims Hers and Aditxt
Pair Corralation between Hims Hers and Aditxt
Given the investment horizon of 90 days Hims Hers Health is expected to generate 1.1 times more return on investment than Aditxt. However, Hims Hers is 1.1 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 -0.11 per unit of risk. If you would invest 875.00 in Hims Hers Health on November 24, 2023 and sell it today you would earn a total of 66.00 from holding Hims Hers Health or generate 7.54% return on investment over 90 days.
|3 Months [change]
Hims Hers Health vs. Aditxt Inc
Hims Hers and Aditxt Volatility Contrast
Pair Trading with Hims Hers and AditxtThe main advantage of trading using opposite Hims Hers and Aditxt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hims Hers 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 Hims Hers Health 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Check portfolio volatility and analyze historical return density to properly model market risk
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Find actively traded Exchange Traded Funds (ETF) in USA
Quickly integrate customizable finance content to your own investment portal
Avoid under-diversification and over-optimization by backtesting your portfolios
Find actively traded stocks across global markets
View associations between returns expected from investment and the risk you assume