Correlation Between Medplus Health and JHS Svendgaard

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

Diversification Opportunities for Medplus Health and JHS Svendgaard

0.4
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Medplus and JHS is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Medplus Health Services and JHS Svendgaard Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JHS Svendgaard Retail and Medplus Health 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 Medplus Health Services are associated (or correlated) with JHS Svendgaard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JHS Svendgaard Retail has no effect on the direction of Medplus Health i.e., Medplus Health and JHS Svendgaard go up and down completely randomly.

Pair Corralation between Medplus Health and JHS Svendgaard

Assuming the 90 days trading horizon Medplus Health Services is expected to generate 0.46 times more return on investment than JHS Svendgaard. However, Medplus Health Services is 2.16 times less risky than JHS Svendgaard. It trades about -0.02 of its potential returns per unit of risk. JHS Svendgaard Retail is currently generating about -0.12 per unit of risk. If you would invest  83,485  in Medplus Health Services on September 8, 2025 and sell it today you would lose (2,440) from holding Medplus Health Services or give up 2.92% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Medplus Health Services  vs.  JHS Svendgaard Retail

 Performance 
       Timeline  
Medplus Health Services 

Risk-Adjusted Performance

Weakest

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

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days JHS Svendgaard Retail has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Medplus Health and JHS Svendgaard Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Medplus Health and JHS Svendgaard

The main advantage of trading using opposite Medplus Health and JHS Svendgaard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medplus Health position performs unexpectedly, JHS Svendgaard 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 JHS Svendgaard will offset losses from the drop in JHS Svendgaard's long position.
The idea behind Medplus Health Services and JHS Svendgaard Retail 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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