Correlation Between Trinity Biotech and Global Wholehealth

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

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

Diversification Opportunities for Trinity Biotech and Global Wholehealth

-0.62

Correlation Coefficient

Trinity Biotech  Global Wholehealth

Excellent diversification

The 3 months correlation between Trinity and Global is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Trinity Biotech plc and Global Wholehealth Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Wholehealth and Trinity Biotech 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 Trinity Biotech plc are associated (or correlated) with Global Wholehealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Wholehealth has no effect on the direction of Trinity Biotech i.e., Trinity Biotech and Global Wholehealth go up and down completely randomly.

Pair Corralation between Trinity Biotech and Global Wholehealth

Given the investment horizon of 90 days Trinity Biotech plc is expected to under-perform the Global Wholehealth. But the stock apears to be less risky and, when comparing its historical volatility, Trinity Biotech plc is 9.14 times less risky than Global Wholehealth. The stock trades about -0.03 of its potential returns per unit of risk. The Global Wholehealth Partners is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Global Wholehealth Partners on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Global Wholehealth Partners or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	86.4%
Values	Daily Returns

Trinity Biotech plc  vs.  Global Wholehealth Partners

Trinity Biotech plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Trinity Biotech plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Global Wholehealth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global Wholehealth Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, Global Wholehealth is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Trinity Biotech and Global Wholehealth

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

The idea behind Trinity Biotech plc and Global Wholehealth Partners 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.

Check out your portfolio center.

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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.