Correlation Between Applied Genetic and Aspira Womans

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Can any of the company-specific risk be diversified away by investing in both Applied Genetic and Aspira Womans 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 Applied Genetic and Aspira Womans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Genetic Tech and Aspira Womans Health, you can compare the effects of market volatilities on Applied Genetic and Aspira Womans 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 Applied Genetic with a short position of Aspira Womans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Genetic and Aspira Womans.

Diversification Opportunities for Applied Genetic and Aspira Womans

0.08
  Correlation Coefficient

Significant diversification

The 3 months correlation between Applied and Aspira is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Applied Genetic Tech and Aspira Womans Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspira Womans Health and Applied Genetic 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 Applied Genetic Tech are associated (or correlated) with Aspira Womans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspira Womans Health has no effect on the direction of Applied Genetic i.e., Applied Genetic and Aspira Womans go up and down completely randomly.

Pair Corralation between Applied Genetic and Aspira Womans

Given the investment horizon of 90 days Applied Genetic Tech is expected to under-perform the Aspira Womans. But the stock apears to be less risky and, when comparing its historical volatility, Applied Genetic Tech is 1.39 times less risky than Aspira Womans. The stock trades about -0.54 of its potential returns per unit of risk. The Aspira Womans Health is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest  53.00  in Aspira Womans Health on June 29, 2022 and sell it today you would lose (14.00)  from holding Aspira Womans Health or give up 26.42% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Applied Genetic Tech  vs.  Aspira Womans Health

 Performance (%) 
       Timeline  
Applied Genetic Tech 
Applied Performance
0 of 100
Over the last 90 days Applied Genetic Tech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Applied Price Channel

Aspira Womans Health 
Aspira Performance
0 of 100
Over the last 90 days Aspira Womans Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Aspira Price Channel

Applied Genetic and Aspira Womans Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Applied Genetic and Aspira Womans

The main advantage of trading using opposite Applied Genetic and Aspira Womans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Genetic position performs unexpectedly, Aspira Womans 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 Aspira Womans will offset losses from the drop in Aspira Womans' long position.
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The idea behind Applied Genetic Tech and Aspira Womans Health 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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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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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