Correlation Between Promimic and Physitrack PLC

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

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

Diversification Opportunities for Promimic and Physitrack PLC

0.0

Correlation Coefficient

Promimic  Physitrack PLC

Pay attention - limited upside

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

Pair Corralation between Promimic and Physitrack PLC

If you would invest  1,380  in Physitrack PLC on April 20, 2025 and sell it today you would earn a total of  35.00  from holding Physitrack PLC or generate 2.54% return on investment over 90 days.

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

Promimic AB  vs.  Physitrack PLC

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 comparatively stable basic indicators, Promimic is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Physitrack PLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Physitrack PLC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Physitrack PLC is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Promimic and Physitrack PLC

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

The idea behind Promimic AB and Physitrack PLC 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.