Correlation Between InfuSystems Holdings and First Advantage

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

By analyzing existing cross correlation between InfuSystems Holdings and First Advantage Corp, you can compare the effects of market volatilities on InfuSystems Holdings and First Advantage 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 First Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfuSystems Holdings and First Advantage.

Diversification Opportunities for InfuSystems Holdings and First Advantage

-0.78

Correlation Coefficient

InfuSystems Holdings  First Advantage

Pay attention - limited upside

The 3 months correlation between InfuSystems and First is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and First Advantage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Advantage Corp 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 First Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Advantage Corp has no effect on the direction of InfuSystems Holdings i.e., InfuSystems Holdings and First Advantage go up and down completely randomly.

Pair Corralation between InfuSystems Holdings and First Advantage

Given the investment horizon of 90 days InfuSystems Holdings is expected to generate 1.51 times more return on investment than First Advantage. However, InfuSystems Holdings is 1.51 times more volatile than First Advantage Corp. It trades about 0.23 of its potential returns per unit of risk. First Advantage Corp is currently generating about -0.04 per unit of risk. If you would invest  613.00  in InfuSystems Holdings on July 8, 2025 and sell it today you would earn a total of  437.00  from holding InfuSystems Holdings or generate 71.29% return on investment over 90 days.

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

InfuSystems Holdings  vs.  First Advantage Corp

InfuSystems Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in InfuSystems Holdings are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, InfuSystems Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

First Advantage Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days First Advantage Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with InfuSystems Holdings and First Advantage

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

The idea behind InfuSystems Holdings and First Advantage 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.