Correlation Between Profound Medical and Perspective Therapeutics
Can any of the company-specific risk be diversified away by investing in both Profound Medical and Perspective Therapeutics 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 Profound Medical and Perspective Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profound Medical Corp and Perspective Therapeutics, you can compare the effects of market volatilities on Profound Medical and Perspective Therapeutics 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 Profound Medical with a short position of Perspective Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profound Medical and Perspective Therapeutics.
Diversification Opportunities for Profound Medical and Perspective Therapeutics
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Profound and Perspective is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Profound Medical Corp and Perspective Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perspective Therapeutics and Profound Medical 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 Profound Medical Corp are associated (or correlated) with Perspective Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perspective Therapeutics has no effect on the direction of Profound Medical i.e., Profound Medical and Perspective Therapeutics go up and down completely randomly.
Pair Corralation between Profound Medical and Perspective Therapeutics
Given the investment horizon of 90 days Profound Medical Corp is expected to generate 0.6 times more return on investment than Perspective Therapeutics. However, Profound Medical Corp is 1.66 times less risky than Perspective Therapeutics. It trades about 0.07 of its potential returns per unit of risk. Perspective Therapeutics is currently generating about -0.04 per unit of risk. If you would invest 674.00 in Profound Medical Corp on October 8, 2025 and sell it today you would earn a total of 84.00 from holding Profound Medical Corp or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Profound Medical Corp vs. Perspective Therapeutics
Performance |
| Timeline |
| Profound Medical Corp |
| Perspective Therapeutics |
Profound Medical and Perspective Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profound Medical and Perspective Therapeutics
The main advantage of trading using opposite Profound Medical and Perspective Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profound Medical position performs unexpectedly, Perspective Therapeutics 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 Perspective Therapeutics will offset losses from the drop in Perspective Therapeutics' long position.| Profound Medical vs. TriSalus Life Sciences | Profound Medical vs. MaxCyte | Profound Medical vs. Perspective Therapeutics | Profound Medical vs. LENSAR Inc |
| Perspective Therapeutics vs. Profound Medical Corp | Perspective Therapeutics vs. TriSalus Life Sciences | Perspective Therapeutics vs. Nyxoah | Perspective Therapeutics vs. Helius Medical Technologies |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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