Correlation Between Interpace Biosciences and Trinity Biotech

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

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

Diversification Opportunities for Interpace Biosciences and Trinity Biotech

0.0

Correlation Coefficient

Interpace Biosciences  Trinity Biotech

Pay attention - limited upside

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

Pair Corralation between Interpace Biosciences and Trinity Biotech

If you would invest  80.00  in Trinity Biotech plc on December 27, 2024 and sell it today you would lose (16.00) from holding Trinity Biotech plc or give up 20.0% of portfolio value over 90 days.

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

Interpace Biosciences  vs.  Trinity Biotech plc

Interpace Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Interpace Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Interpace Biosciences is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Trinity Biotech plc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Trinity Biotech plc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Trinity Biotech may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Interpace Biosciences and Trinity Biotech

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

The idea behind Interpace Biosciences and Trinity Biotech plc 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.