Correlation Between Interactive Strength and Semler Scientific

Can any of the company-specific risk be diversified away by investing in both Interactive Strength and Semler Scientific 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 Interactive Strength and Semler Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Interactive Strength Common and Semler Scientific, you can compare the effects of market volatilities on Interactive Strength and Semler Scientific 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 Interactive Strength with a short position of Semler Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interactive Strength and Semler Scientific.

Diversification Opportunities for Interactive Strength and Semler Scientific

0.75

Correlation Coefficient

Interactive Strength  Semler Scientific

Poor diversification

The 3 months correlation between Interactive and Semler is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Strength Common and Semler Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semler Scientific and Interactive Strength 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 Interactive Strength Common are associated (or correlated) with Semler Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semler Scientific has no effect on the direction of Interactive Strength i.e., Interactive Strength and Semler Scientific go up and down completely randomly.

Pair Corralation between Interactive Strength and Semler Scientific

Given the investment horizon of 90 days Interactive Strength Common is expected to under-perform the Semler Scientific. But the stock apears to be less risky and, when comparing its historical volatility, Interactive Strength Common is 1.2 times less risky than Semler Scientific. The stock trades about -0.13 of its potential returns per unit of risk. The Semler Scientific is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  3,189  in Semler Scientific on August 19, 2025 and sell it today you would lose (1,007) from holding Semler Scientific or give up 31.58% of portfolio value over 90 days.

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

Interactive Strength Common  vs.  Semler Scientific

Interactive Strength

Risk-Adjusted Performance

Weakest

Over the last 90 days Interactive Strength Common has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Semler Scientific

Risk-Adjusted Performance

Weakest

Over the last 90 days Semler Scientific has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Interactive Strength and Semler Scientific

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

The idea behind Interactive Strength Common and Semler Scientific 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.