Correlation Between Profound Medical and Atlantic International

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

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

Diversification Opportunities for Profound Medical and Atlantic International

-0.74

Correlation Coefficient

Profound Medical  Atlantic International

Pay attention - limited upside

The 3 months correlation between Profound and Atlantic is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Profound Medical Corp and Atlantic International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic International and Profound Medical 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 Profound Medical Corp are associated (or correlated) with Atlantic International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic International has no effect on the direction of Profound Medical i.e., Profound Medical and Atlantic International go up and down completely randomly.

Pair Corralation between Profound Medical and Atlantic International

Given the investment horizon of 90 days Profound Medical Corp is expected to generate 0.6 times more return on investment than Atlantic International. However, Profound Medical Corp is 1.66 times less risky than Atlantic International. It trades about 0.14 of its potential returns per unit of risk. Atlantic International Corp is currently generating about -0.05 per unit of risk. If you would invest  475.00  in Profound Medical Corp on August 18, 2025 and sell it today you would earn a total of  210.00  from holding Profound Medical Corp or generate 44.21% return on investment over 90 days.

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

Profound Medical Corp  vs.  Atlantic International Corp

Profound Medical Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Profound Medical Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Profound Medical reported solid returns over the last few months and may actually be approaching a breakup point.

Atlantic International

Risk-Adjusted Performance

Weakest

Over the last 90 days Atlantic International Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Profound Medical and Atlantic International

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

The idea behind Profound Medical Corp and Atlantic International 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.