Correlation Between InfuSystems Holdings and BrightSpring Health

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

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

Diversification Opportunities for InfuSystems Holdings and BrightSpring Health

0.25

Correlation Coefficient

InfuSystems Holdings  BrightSpring Health

Modest diversification

The 3 months correlation between InfuSystems and BrightSpring is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and BrightSpring Health Services, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrightSpring Health and InfuSystems Holdings 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 InfuSystems Holdings are associated (or correlated) with BrightSpring Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrightSpring Health has no effect on the direction of InfuSystems Holdings i.e., InfuSystems Holdings and BrightSpring Health go up and down completely randomly.

Pair Corralation between InfuSystems Holdings and BrightSpring Health

Given the investment horizon of 90 days InfuSystems Holdings is expected to generate 1.66 times more return on investment than BrightSpring Health. However, InfuSystems Holdings is 1.66 times more volatile than BrightSpring Health Services,. It trades about 0.27 of its potential returns per unit of risk. BrightSpring Health Services, is currently generating about 0.04 per unit of risk. If you would invest  519.00  in InfuSystems Holdings on May 27, 2025 and sell it today you would earn a total of  471.00  from holding InfuSystems Holdings or generate 90.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

InfuSystems Holdings  vs.  BrightSpring Health Services,

InfuSystems Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in InfuSystems Holdings are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical and fundamental indicators, InfuSystems Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

BrightSpring Health

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in BrightSpring Health Services, are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, BrightSpring Health is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with InfuSystems Holdings and BrightSpring Health

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

The idea behind InfuSystems Holdings and BrightSpring Health Services, 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.