Correlation Between Physitrack PLC and Nordhealth

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

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

Diversification Opportunities for Physitrack PLC and Nordhealth

0.25

Correlation Coefficient

Physitrack PLC  Nordhealth

Modest diversification

The 3 months correlation between Physitrack and Nordhealth is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Physitrack PLC and Nordhealth AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordhealth AS and Physitrack PLC 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 Physitrack PLC are associated (or correlated) with Nordhealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordhealth AS has no effect on the direction of Physitrack PLC i.e., Physitrack PLC and Nordhealth go up and down completely randomly.

Pair Corralation between Physitrack PLC and Nordhealth

Assuming the 90 days trading horizon Physitrack PLC is expected to generate 1.45 times less return on investment than Nordhealth. In addition to that, Physitrack PLC is 1.04 times more volatile than Nordhealth AS. It trades about 0.03 of its total potential returns per unit of risk. Nordhealth AS is currently generating about 0.04 per unit of volatility. If you would invest  3,680  in Nordhealth AS on April 25, 2025 and sell it today you would earn a total of  200.00  from holding Nordhealth AS or generate 5.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Physitrack PLC  vs.  Nordhealth AS

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.

Nordhealth AS

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nordhealth AS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Nordhealth may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Physitrack PLC and Nordhealth

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

The idea behind Physitrack PLC and Nordhealth AS 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.