Correlation Between Haier Smart and Garofalo Health

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Can any of the company-specific risk be diversified away by investing in both Haier Smart and Garofalo Health 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 Haier Smart and Garofalo Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and Garofalo Health Care, you can compare the effects of market volatilities on Haier Smart and Garofalo Health 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 Haier Smart with a short position of Garofalo Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and Garofalo Health.

Diversification Opportunities for Haier Smart and Garofalo Health

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Haier Smart and Garofalo Health

If you would invest  470.00  in Garofalo Health Care on August 21, 2025 and sell it today you would earn a total of  37.00  from holding Garofalo Health Care or generate 7.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Haier Smart Home  vs.  Garofalo Health Care

 Performance 
       Timeline  
Haier Smart Home 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Over the last 90 days Haier Smart Home has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Haier Smart is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
Garofalo Health Care 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Garofalo Health Care are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Garofalo Health may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Haier Smart and Garofalo Health Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Haier Smart and Garofalo Health

The main advantage of trading using opposite Haier Smart and Garofalo Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart position performs unexpectedly, Garofalo Health 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 Garofalo Health will offset losses from the drop in Garofalo Health's long position.
The idea behind Haier Smart Home and Garofalo Health Care 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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