Correlation Between Medhelp Care and Proact IT

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

By analyzing existing cross correlation between Medhelp Care AB and Proact IT Group, you can compare the effects of market volatilities on Medhelp Care and Proact IT 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 Medhelp Care with a short position of Proact IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medhelp Care and Proact IT.

Diversification Opportunities for Medhelp Care and Proact IT

0.0

Correlation Coefficient

Medhelp Care  Proact IT

Pay attention - limited upside

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

Pair Corralation between Medhelp Care and Proact IT

If you would invest (100.00) in Medhelp Care AB on April 20, 2025 and sell it today you would earn a total of  100.00  from holding Medhelp Care AB or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Medhelp Care AB  vs.  Proact IT Group

Medhelp Care AB

Risk-Adjusted Performance

Solid

Over the last 90 days Medhelp Care AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Medhelp Care is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Proact IT Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Proact IT Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Medhelp Care and Proact IT

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

The idea behind Medhelp Care AB and Proact IT Group 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.