Correlation Between Perimeter Medical and HLS Therapeutics

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

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

Diversification Opportunities for Perimeter Medical and HLS Therapeutics

-0.71

Correlation Coefficient

Perimeter Medical  HLS Therapeutics

Pay attention - limited upside

The 3 months correlation between Perimeter and HLS is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Perimeter Medical Imaging and HLS Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HLS Therapeutics and Perimeter Medical 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 Perimeter Medical Imaging are associated (or correlated) with HLS Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HLS Therapeutics has no effect on the direction of Perimeter Medical i.e., Perimeter Medical and HLS Therapeutics go up and down completely randomly.

Pair Corralation between Perimeter Medical and HLS Therapeutics

Assuming the 90 days trading horizon Perimeter Medical Imaging is expected to under-perform the HLS Therapeutics. In addition to that, Perimeter Medical is 3.43 times more volatile than HLS Therapeutics. It trades about -0.08 of its total potential returns per unit of risk. HLS Therapeutics is currently generating about 0.16 per unit of volatility. If you would invest  417.00  in HLS Therapeutics on April 24, 2025 and sell it today you would earn a total of  74.00  from holding HLS Therapeutics or generate 17.75% return on investment over 90 days.

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

Perimeter Medical Imaging  vs.  HLS Therapeutics

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.

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.

Pair Trading with Perimeter Medical and HLS Therapeutics

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

The idea behind Perimeter Medical Imaging and HLS Therapeutics 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..