Correlation Between Cardio Diagnostics and Genfit

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

By analyzing existing cross correlation between Cardio Diagnostics Holdings and Genfit, you can compare the effects of market volatilities on Cardio Diagnostics and Genfit 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 Cardio Diagnostics with a short position of Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardio Diagnostics and Genfit.

Diversification Opportunities for Cardio Diagnostics and Genfit

-0.41

Correlation Coefficient

Cardio Diagnostics  Genfit

Very good diversification

The 3 months correlation between Cardio and Genfit is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cardio Diagnostics Holdings and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit and Cardio Diagnostics 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 Cardio Diagnostics Holdings are associated (or correlated) with Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Cardio Diagnostics i.e., Cardio Diagnostics and Genfit go up and down completely randomly.

Pair Corralation between Cardio Diagnostics and Genfit

Given the investment horizon of 90 days Cardio Diagnostics Holdings is expected to generate 2.17 times more return on investment than Genfit. However, Cardio Diagnostics is 2.17 times more volatile than Genfit. It trades about 0.02 of its potential returns per unit of risk. Genfit is currently generating about 0.0 per unit of risk. If you would invest  35.00  in Cardio Diagnostics Holdings on September 4, 2024 and sell it today you would lose (5.00) from holding Cardio Diagnostics Holdings or give up 14.29% of portfolio value over 90 days.

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

Cardio Diagnostics Holdings  vs.  Genfit

Cardio Diagnostics

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cardio Diagnostics Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Cardio Diagnostics may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Genfit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genfit has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Genfit is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cardio Diagnostics and Genfit

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

The idea behind Cardio Diagnostics Holdings and Genfit 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.