Correlation Between Smith Nephew and Perfect Medical

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

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

Diversification Opportunities for Smith Nephew and Perfect Medical

0.0

Correlation Coefficient

Smith Nephew  Perfect Medical

Pay attention - limited upside

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

Pair Corralation between Smith Nephew and Perfect Medical

If you would invest  3,245  in Smith Nephew SNATS on September 7, 2025 and sell it today you would earn a total of  28.00  from holding Smith Nephew SNATS or generate 0.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Smith Nephew SNATS  vs.  Perfect Medical Health

Smith Nephew SNATS

Risk-Adjusted Performance

Weakest

Over the last 90 days Smith Nephew SNATS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Perfect Medical Health

Risk-Adjusted Performance

Weakest

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

Pair Trading with Smith Nephew and Perfect Medical

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

The idea behind Smith Nephew SNATS and Perfect Medical Health 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.