Correlation Between Heart Test and Helius Medical

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

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

Diversification Opportunities for Heart Test and Helius Medical

0.5

Correlation Coefficient

Heart Test  Helius Medical

Very weak diversification

The 3 months correlation between Heart and Helius is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Heart Test Laboratories and Helius Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helius Medical Techn and Heart Test 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 Heart Test Laboratories are associated (or correlated) with Helius Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helius Medical Techn has no effect on the direction of Heart Test i.e., Heart Test and Helius Medical go up and down completely randomly.

Pair Corralation between Heart Test and Helius Medical

Given the investment horizon of 90 days Heart Test Laboratories is expected to generate 0.43 times more return on investment than Helius Medical. However, Heart Test Laboratories is 2.31 times less risky than Helius Medical. It trades about -0.08 of its potential returns per unit of risk. Helius Medical Technologies is currently generating about -0.07 per unit of risk. If you would invest  372.00  in Heart Test Laboratories on December 29, 2024 and sell it today you would lose (76.00) from holding Heart Test Laboratories or give up 20.43% of portfolio value over 90 days.

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

Heart Test Laboratories  vs.  Helius Medical Technologies

Heart Test Laboratories

Risk-Adjusted Performance

Very Weak

Over the last 90 days Heart Test Laboratories 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 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.

Helius Medical Techn

Risk-Adjusted Performance

Very Weak

Over the last 90 days Helius Medical Technologies 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 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 Heart Test and Helius Medical

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

The idea behind Heart Test Laboratories and Helius Medical Technologies 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.