Correlation Between Modular Medical and Profound Medical
Can any of the company-specific risk be diversified away by investing in both Modular Medical and Profound 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 Modular Medical and Profound Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Modular Medical and Profound Medical Corp, you can compare the effects of market volatilities on Modular Medical and Profound 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 Modular Medical with a short position of Profound Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modular Medical and Profound Medical.
Diversification Opportunities for Modular Medical and Profound Medical
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Modular and Profound is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Modular Medical and Profound Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profound Medical Corp and Modular 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 Modular Medical are associated (or correlated) with Profound Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profound Medical Corp has no effect on the direction of Modular Medical i.e., Modular Medical and Profound Medical go up and down completely randomly.
Pair Corralation between Modular Medical and Profound Medical
Given the investment horizon of 90 days Modular Medical is expected to generate 107.25 times less return on investment than Profound Medical. In addition to that, Modular Medical is 1.67 times more volatile than Profound Medical Corp. It trades about 0.0 of its total potential returns per unit of risk. Profound Medical Corp is currently generating about 0.04 per unit of volatility. If you would invest 599.00 in Profound Medical Corp on November 8, 2025 and sell it today you would earn a total of 33.00 from holding Profound Medical Corp or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Modular Medical vs. Profound Medical Corp
Performance |
| Timeline |
| Modular Medical |
| Profound Medical Corp |
Modular Medical and Profound Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modular Medical and Profound Medical
The main advantage of trading using opposite Modular Medical and Profound Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modular Medical position performs unexpectedly, Profound 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 Profound Medical will offset losses from the drop in Profound Medical's long position.| Modular Medical vs. Vicarious Surgical | Modular Medical vs. Nexalin Technology | Modular Medical vs. iBio Common Stock | Modular Medical vs. Hyperion DeFi |
| Profound Medical vs. TriSalus Life Sciences | Profound Medical vs. MaxCyte | Profound Medical vs. Perspective Therapeutics | Profound Medical vs. LENSAR Inc |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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