Correlation Between Addex Therapeutics and Cardio Diagnostics
Can any of the company-specific risk be diversified away by investing in both Addex Therapeutics and Cardio Diagnostics 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 Addex Therapeutics and Cardio Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addex Therapeutics and Cardio Diagnostics Holdings, you can compare the effects of market volatilities on Addex Therapeutics and Cardio Diagnostics 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 Addex Therapeutics with a short position of Cardio Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addex Therapeutics and Cardio Diagnostics.
Diversification Opportunities for Addex Therapeutics and Cardio Diagnostics
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Addex and Cardio is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Addex Therapeutics and Cardio Diagnostics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardio Diagnostics and Addex Therapeutics 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 Addex Therapeutics are associated (or correlated) with Cardio Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardio Diagnostics has no effect on the direction of Addex Therapeutics i.e., Addex Therapeutics and Cardio Diagnostics go up and down completely randomly.
Pair Corralation between Addex Therapeutics and Cardio Diagnostics
Given the investment horizon of 90 days Addex Therapeutics is expected to generate 7.27 times less return on investment than Cardio Diagnostics. But when comparing it to its historical volatility, Addex Therapeutics is 1.31 times less risky than Cardio Diagnostics. It trades about 0.03 of its potential returns per unit of risk. Cardio Diagnostics Holdings is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 258.00 in Cardio Diagnostics Holdings on September 22, 2025 and sell it today you would earn a total of 65.00 from holding Cardio Diagnostics Holdings or generate 25.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Addex Therapeutics vs. Cardio Diagnostics Holdings
Performance |
| Timeline |
| Addex Therapeutics |
| Cardio Diagnostics |
Addex Therapeutics and Cardio Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addex Therapeutics and Cardio Diagnostics
The main advantage of trading using opposite Addex Therapeutics and Cardio Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addex Therapeutics position performs unexpectedly, Cardio Diagnostics 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 Cardio Diagnostics will offset losses from the drop in Cardio Diagnostics' long position.The idea behind Addex Therapeutics and Cardio Diagnostics Holdings 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.
| Cardio Diagnostics vs. Addex Therapeutics | Cardio Diagnostics vs. Brainstorm Cell Therapeutics | Cardio Diagnostics vs. Neurosense Therapeutics | Cardio Diagnostics vs. Matinas BioPharma Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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