Correlation Between HLS Therapeutics and Perimeter Medical

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

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

Diversification Opportunities for HLS Therapeutics and Perimeter Medical

-0.72

Correlation Coefficient

HLS Therapeutics  Perimeter Medical

Pay attention - limited upside

The 3 months correlation between HLS and Perimeter is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding HLS Therapeutics and Perimeter Medical Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perimeter Medical Imaging and HLS Therapeutics 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 HLS Therapeutics are associated (or correlated) with Perimeter Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perimeter Medical Imaging has no effect on the direction of HLS Therapeutics i.e., HLS Therapeutics and Perimeter Medical go up and down completely randomly.

Pair Corralation between HLS Therapeutics and Perimeter Medical

Assuming the 90 days trading horizon HLS Therapeutics is expected to generate 0.29 times more return on investment than Perimeter Medical. However, HLS Therapeutics is 3.45 times less risky than Perimeter Medical. It trades about 0.16 of its potential returns per unit of risk. Perimeter Medical Imaging is currently generating about -0.09 per unit of risk. If you would invest  421.00  in HLS Therapeutics on April 23, 2025 and sell it today you would earn a total of  78.00  from holding HLS Therapeutics or generate 18.53% return on investment over 90 days.

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

HLS Therapeutics  vs.  Perimeter Medical Imaging

HLS Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in HLS Therapeutics are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, HLS Therapeutics displayed solid returns over the last few months and may actually be approaching a breakup point.

Perimeter Medical Imaging

Risk-Adjusted Performance

Very Weak

Over the last 90 days Perimeter Medical Imaging has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with HLS Therapeutics and Perimeter Medical

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

The idea behind HLS Therapeutics and Perimeter Medical Imaging 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.