Correlation Between G Medical and InfuSystems Holdings

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

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

Diversification Opportunities for G Medical and InfuSystems Holdings

0.0

Correlation Coefficient

G Medical  InfuSystems Holdings

Pay attention - limited upside

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

Pair Corralation between G Medical and InfuSystems Holdings

If you would invest (100.00) in G Medical Innovations on December 30, 2024 and sell it today you would earn a total of  100.00  from holding G Medical Innovations or generate -100.0% return on investment over 90 days.

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

G Medical Innovations  vs.  InfuSystems Holdings

G Medical Innovations

Risk-Adjusted Performance

Very Weak

Over the last 90 days G Medical Innovations has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, G Medical is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

InfuSystems Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days InfuSystems Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with G Medical and InfuSystems Holdings

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

The idea behind G Medical Innovations and InfuSystems Holdings 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.