Correlation Between Forian and TruBridge

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

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

Diversification Opportunities for Forian and TruBridge

0.38

Correlation Coefficient

Forian  TruBridge

Weak diversification

The 3 months correlation between Forian and TruBridge is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Forian Inc and TruBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TruBridge and Forian 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 Forian Inc are associated (or correlated) with TruBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TruBridge has no effect on the direction of Forian i.e., Forian and TruBridge go up and down completely randomly.

Pair Corralation between Forian and TruBridge

Given the investment horizon of 90 days Forian Inc is expected to generate 1.68 times more return on investment than TruBridge. However, Forian is 1.68 times more volatile than TruBridge. It trades about 0.03 of its potential returns per unit of risk. TruBridge is currently generating about -0.15 per unit of risk. If you would invest  186.00  in Forian Inc on May 14, 2025 and sell it today you would earn a total of  4.00  from holding Forian Inc or generate 2.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Forian Inc  vs.  TruBridge

Forian Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Forian Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Forian may actually be approaching a critical reversion point that can send shares even higher in September 2025.

TruBridge

Risk-Adjusted Performance

Weakest

Over the last 90 days TruBridge has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Forian and TruBridge

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

The idea behind Forian Inc and TruBridge 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.