Correlation Between Basel Medical and Spectral

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

By analyzing existing cross correlation between Basel Medical Group and Spectral AI, you can compare the effects of market volatilities on Basel Medical and Spectral 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 Basel Medical with a short position of Spectral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basel Medical and Spectral.

Diversification Opportunities for Basel Medical and Spectral

-0.37

Correlation Coefficient

Basel Medical  Spectral

Very good diversification

The 3 months correlation between Basel and Spectral is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Basel Medical Group and Spectral AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectral AI and Basel 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 Basel Medical Group are associated (or correlated) with Spectral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectral AI has no effect on the direction of Basel Medical i.e., Basel Medical and Spectral go up and down completely randomly.

Pair Corralation between Basel Medical and Spectral

Given the investment horizon of 90 days Basel Medical Group is expected to generate 11.19 times more return on investment than Spectral. However, Basel Medical is 11.19 times more volatile than Spectral AI. It trades about 0.09 of its potential returns per unit of risk. Spectral AI is currently generating about 0.21 per unit of risk. If you would invest  422.00  in Basel Medical Group on May 5, 2025 and sell it today you would lose (220.00) from holding Basel Medical Group or give up 52.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Basel Medical Group  vs.  Spectral AI

Basel Medical Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Basel Medical Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain technical and fundamental indicators, Basel Medical disclosed solid returns over the last few months and may actually be approaching a breakup point.

Spectral AI

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Spectral AI are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Spectral demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Basel Medical and Spectral

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

The idea behind Basel Medical Group and Spectral AI 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.