Correlation Between Globus Medical, and Intelbras

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

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

Diversification Opportunities for Globus Medical, and Intelbras

-0.96

Correlation Coefficient

Globus Medical,  Intelbras

Pay attention - limited upside

The 3 months correlation between Globus and Intelbras is -0.96. Overlapping area represents the amount of risk that can be diversified away by holding Globus Medical, and Intelbras SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelbras SA and Globus 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 Globus Medical, are associated (or correlated) with Intelbras. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelbras SA has no effect on the direction of Globus Medical, i.e., Globus Medical, and Intelbras go up and down completely randomly.

Pair Corralation between Globus Medical, and Intelbras

Assuming the 90 days trading horizon Globus Medical, is expected to generate 0.71 times more return on investment than Intelbras. However, Globus Medical, is 1.41 times less risky than Intelbras. It trades about 0.2 of its potential returns per unit of risk. Intelbras SA is currently generating about -0.06 per unit of risk. If you would invest  4,900  in Globus Medical, on October 5, 2024 and sell it today you would earn a total of  1,610  from holding Globus Medical, or generate 32.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	19.3%
Values	Daily Returns

Globus Medical,  vs.  Intelbras SA

Globus Medical,

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Globus Medical, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak primary indicators, Globus Medical, sustained solid returns over the last few months and may actually be approaching a breakup point.

Intelbras SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intelbras SA 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 February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Globus Medical, and Intelbras

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

The idea behind Globus Medical, and Intelbras SA 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.