Correlation Between Pulmonx Corp and Ainos

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

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

Diversification Opportunities for Pulmonx Corp and Ainos

0.69

Correlation Coefficient

Pulmonx Corp  Ainos

Poor diversification

The 3 months correlation between Pulmonx and Ainos is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Pulmonx Corp and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and Pulmonx Corp 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 Pulmonx Corp 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 Pulmonx Corp i.e., Pulmonx Corp and Ainos go up and down completely randomly.

Pair Corralation between Pulmonx Corp and Ainos

Given the investment horizon of 90 days Pulmonx Corp is expected to under-perform the Ainos. But the stock apears to be less risky and, when comparing its historical volatility, Pulmonx Corp is 1.48 times less risky than Ainos. The stock trades about -0.09 of its potential returns per unit of risk. The Ainos Inc is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  101.00  in Ainos Inc on March 22, 2024 and sell it today you would lose (14.00) from holding Ainos Inc or give up 13.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Pulmonx Corp  vs.  Ainos Inc

Pulmonx Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pulmonx Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in July 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Ainos Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ainos Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in July 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Pulmonx Corp and Ainos

The main advantage of trading using opposite Pulmonx Corp and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pulmonx Corp 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.

The idea behind Pulmonx Corp and Ainos 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.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.