Correlation Between Promimic and Medhelp Care

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

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

Diversification Opportunities for Promimic and Medhelp Care

-0.51

Correlation Coefficient

Promimic  Medhelp Care

Excellent diversification

The 3 months correlation between Promimic and Medhelp is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Promimic AB and Medhelp Care AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medhelp Care AB and Promimic 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 Promimic AB are associated (or correlated) with Medhelp Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medhelp Care AB has no effect on the direction of Promimic i.e., Promimic and Medhelp Care go up and down completely randomly.

Pair Corralation between Promimic and Medhelp Care

Assuming the 90 days trading horizon Promimic AB is expected to under-perform the Medhelp Care. In addition to that, Promimic is 1.75 times more volatile than Medhelp Care AB. It trades about -0.05 of its total potential returns per unit of risk. Medhelp Care AB is currently generating about 0.21 per unit of volatility. If you would invest  320.00  in Medhelp Care AB on April 24, 2025 and sell it today you would earn a total of  176.00  from holding Medhelp Care AB or generate 55.0% return on investment over 90 days.

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

Promimic AB  vs.  Medhelp Care AB

Promimic AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Promimic AB 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.

Medhelp Care AB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Medhelp Care AB are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating fundamental indicators, Medhelp Care sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Promimic and Medhelp Care

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

The idea behind Promimic AB and Medhelp Care AB 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.