Correlation Between Farstarcap Investment and Profound Medical

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

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

Diversification Opportunities for Farstarcap Investment and Profound Medical

0.0

Correlation Coefficient

Farstarcap Investment  Profound Medical

Pay attention - limited upside

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

Pair Corralation between Farstarcap Investment and Profound Medical

If you would invest  685.00  in Profound Medical Corp on May 6, 2025 and sell it today you would earn a total of  93.00  from holding Profound Medical Corp or generate 13.58% return on investment over 90 days.

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

Farstarcap Investment Corp  vs.  Profound Medical Corp

Farstarcap Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Farstarcap Investment Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Farstarcap Investment is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Profound Medical Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Profound Medical Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Profound Medical displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Farstarcap Investment and Profound Medical

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

The idea behind Farstarcap Investment Corp and Profound Medical Corp 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.