Correlation Between GlucoTrack and InfuSystems Holdings

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

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

Diversification Opportunities for GlucoTrack and InfuSystems Holdings

-0.85

Correlation Coefficient

GlucoTrack  InfuSystems Holdings

Pay attention - limited upside

The 3 months correlation between GlucoTrack and InfuSystems is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding GlucoTrack and InfuSystems Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InfuSystems Holdings and GlucoTrack 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 GlucoTrack are associated (or correlated) with InfuSystems Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InfuSystems Holdings has no effect on the direction of GlucoTrack i.e., GlucoTrack and InfuSystems Holdings go up and down completely randomly.

Pair Corralation between GlucoTrack and InfuSystems Holdings

Given the investment horizon of 90 days GlucoTrack is expected to under-perform the InfuSystems Holdings. In addition to that, GlucoTrack is 2.9 times more volatile than InfuSystems Holdings. It trades about -0.2 of its total potential returns per unit of risk. InfuSystems Holdings is currently generating about 0.15 per unit of volatility. If you would invest  633.00  in InfuSystems Holdings on September 2, 2024 and sell it today you would earn a total of  257.00  from holding InfuSystems Holdings or generate 40.6% return on investment over 90 days.

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

GlucoTrack  vs.  InfuSystems Holdings

GlucoTrack

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GlucoTrack has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

InfuSystems Holdings

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in InfuSystems Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, InfuSystems Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GlucoTrack and InfuSystems Holdings

The main advantage of trading using opposite GlucoTrack and InfuSystems Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlucoTrack position performs unexpectedly, InfuSystems Holdings 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 InfuSystems Holdings will offset losses from the drop in InfuSystems Holdings' long position.

The idea behind GlucoTrack and InfuSystems Holdings 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.