Correlation Between MedX Health and Torm PLC

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

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

Diversification Opportunities for MedX Health and Torm PLC

0.0

Correlation Coefficient

MedX Health  Torm PLC

Pay attention - limited upside

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

Pair Corralation between MedX Health and Torm PLC

If you would invest  1,660  in Torm PLC Class on May 6, 2025 and sell it today you would earn a total of  181.00  from holding Torm PLC Class or generate 10.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

MedX Health Corp  vs.  Torm PLC Class

MedX Health Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days MedX Health Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, MedX Health is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Torm PLC Class

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Torm PLC Class are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, Torm PLC may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with MedX Health and Torm PLC

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

The idea behind MedX Health Corp and Torm PLC Class 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.