Correlation Between Hospital Mater and Gen Digital

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

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

Diversification Opportunities for Hospital Mater and Gen Digital

0.0

Correlation Coefficient

Hospital Mater  Gen Digital

Pay attention - limited upside

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

Pair Corralation between Hospital Mater and Gen Digital

Assuming the 90 days trading horizon Hospital Mater Dei is expected to generate 3.98 times more return on investment than Gen Digital. However, Hospital Mater is 3.98 times more volatile than Gen Digital. It trades about 0.08 of its potential returns per unit of risk. Gen Digital is currently generating about 0.18 per unit of risk. If you would invest  405.00  in Hospital Mater Dei on April 15, 2025 and sell it today you would earn a total of  53.00  from holding Hospital Mater Dei or generate 13.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hospital Mater Dei  vs.  Gen Digital

Hospital Mater Dei

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hospital Mater Dei are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Hospital Mater unveiled solid returns over the last few months and may actually be approaching a breakup point.

Gen Digital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gen Digital are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Gen Digital may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Hospital Mater and Gen Digital

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

The idea behind Hospital Mater Dei and Gen Digital 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..