Correlation Between GlucoTrack and McKesson

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

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

Diversification Opportunities for GlucoTrack and McKesson

-0.41

Correlation Coefficient

GlucoTrack  McKesson

Very good diversification

The 3 months correlation between GlucoTrack and McKesson is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding GlucoTrack and McKesson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McKesson and GlucoTrack 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 GlucoTrack are associated (or correlated) with McKesson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McKesson has no effect on the direction of GlucoTrack i.e., GlucoTrack and McKesson go up and down completely randomly.

Pair Corralation between GlucoTrack and McKesson

Given the investment horizon of 90 days GlucoTrack is expected to under-perform the McKesson. In addition to that, GlucoTrack is 8.08 times more volatile than McKesson. It trades about -0.04 of its total potential returns per unit of risk. McKesson is currently generating about -0.01 per unit of volatility. If you would invest  70,630  in McKesson on May 5, 2025 and sell it today you would lose (750.00) from holding McKesson or give up 1.06% of portfolio value over 90 days.

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

GlucoTrack  vs.  McKesson

GlucoTrack

Risk-Adjusted Performance

Very Weak

Over the last 90 days GlucoTrack 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 quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

McKesson

Risk-Adjusted Performance

Very Weak

Over the last 90 days McKesson has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, McKesson is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with GlucoTrack and McKesson

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

The idea behind GlucoTrack and McKesson 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.