Correlation Between Ambarella and Perfect Medical

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

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

Diversification Opportunities for Ambarella and Perfect Medical

0.0

Correlation Coefficient

Ambarella  Perfect Medical

Pay attention - limited upside

The 3 months correlation between Ambarella and Perfect is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ambarella and Perfect Medical Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perfect Medical Health and Ambarella 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 Ambarella are associated (or correlated) with Perfect Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perfect Medical Health has no effect on the direction of Ambarella i.e., Ambarella and Perfect Medical go up and down completely randomly.

Pair Corralation between Ambarella and Perfect Medical

If you would invest  24.00  in Perfect Medical Health on September 6, 2025 and sell it today you would earn a total of  0.00  from holding Perfect Medical Health or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Ambarella  vs.  Perfect Medical Health

Ambarella

Risk-Adjusted Performance

Weakest

Over the last 90 days Ambarella has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Perfect Medical Health

Risk-Adjusted Performance

Weakest

Over the last 90 days Perfect Medical Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Perfect Medical is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Ambarella and Perfect Medical

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

The idea behind Ambarella and Perfect Medical 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.