Correlation Between Healthcare Triangle and Mitesco

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

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

Diversification Opportunities for Healthcare Triangle and Mitesco

-0.39

Correlation Coefficient

Healthcare Triangle  Mitesco

Very good diversification

The 3 months correlation between Healthcare and Mitesco is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Triangle and Mitesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitesco and Healthcare Triangle 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 Healthcare Triangle are associated (or correlated) with Mitesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitesco has no effect on the direction of Healthcare Triangle i.e., Healthcare Triangle and Mitesco go up and down completely randomly.

Pair Corralation between Healthcare Triangle and Mitesco

Given the investment horizon of 90 days Healthcare Triangle is expected to under-perform the Mitesco. But the stock apears to be less risky and, when comparing its historical volatility, Healthcare Triangle is 1.12 times less risky than Mitesco. The stock trades about -0.03 of its potential returns per unit of risk. The Mitesco is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  40.00  in Mitesco on December 30, 2024 and sell it today you would earn a total of  11.00  from holding Mitesco or generate 27.5% return on investment over 90 days.

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

Healthcare Triangle  vs.  Mitesco

Healthcare Triangle

Risk-Adjusted Performance

Very Weak

Over the last 90 days Healthcare Triangle has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Mitesco

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mitesco are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, Mitesco demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Healthcare Triangle and Mitesco

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

The idea behind Healthcare Triangle and Mitesco 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.