Correlation Between Federal National and Cardio Diagnostics
Can any of the company-specific risk be diversified away by investing in both Federal National 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 Federal National and Cardio Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federal National Mortgage and Cardio Diagnostics Holdings, you can compare the effects of market volatilities on Federal National 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 Federal National with a short position of Cardio Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal National and Cardio Diagnostics.
Diversification Opportunities for Federal National and Cardio Diagnostics
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federal and Cardio is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Federal National Mortgage and Cardio Diagnostics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardio Diagnostics and Federal National 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 Federal National Mortgage 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 Federal National i.e., Federal National and Cardio Diagnostics go up and down completely randomly.
Pair Corralation between Federal National and Cardio Diagnostics
Assuming the 90 days horizon Federal National Mortgage is expected to generate 0.72 times more return on investment than Cardio Diagnostics. However, Federal National Mortgage is 1.39 times less risky than Cardio Diagnostics. It trades about 0.09 of its potential returns per unit of risk. Cardio Diagnostics Holdings is currently generating about 0.01 per unit of risk. If you would invest 4,450,000 in Federal National Mortgage on May 30, 2025 and sell it today you would earn a total of 760,000 from holding Federal National Mortgage or generate 17.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federal National Mortgage vs. Cardio Diagnostics Holdings
Performance |
| Timeline |
| Federal National Mortgage |
| Cardio Diagnostics |
Federal National and Cardio Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal National and Cardio Diagnostics
The main advantage of trading using opposite Federal National and Cardio Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal National 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.| Federal National vs. Federal Home Loan | Federal National vs. Federal Home Loan | Federal National vs. Federal Home Loan | Federal National vs. Federal Home Loan |
| Cardio Diagnostics vs. Palisade Bio | Cardio Diagnostics vs. Unicycive Therapeutics | Cardio Diagnostics vs. Immix Biopharma | Cardio Diagnostics vs. Heart Test Laboratories |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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