Correlation Between Co Diagnostics and Viveve Medical

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

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

Diversification Opportunities for Co Diagnostics and Viveve Medical

0.06

Correlation Coefficient

Co Diagnostics  Viveve Medical

Significant diversification

The 3 months correlation between CODX and Viveve is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Co Diagnostics and Viveve Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viveve Medical and Co 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 Co Diagnostics are associated (or correlated) with Viveve Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viveve Medical has no effect on the direction of Co Diagnostics i.e., Co Diagnostics and Viveve Medical go up and down completely randomly.

Pair Corralation between Co Diagnostics and Viveve Medical

If you would invest  9.55  in Viveve Medical on October 1, 2024 and sell it today you would earn a total of  0.00  from holding Viveve Medical or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Co Diagnostics  vs.  Viveve Medical

Co Diagnostics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Co Diagnostics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Viveve Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Viveve Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Viveve Medical is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Co Diagnostics and Viveve Medical

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

The idea behind Co Diagnostics and Viveve Medical 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.