Correlation Between Cardio Diagnostics and ECARX Holdings

Can any of the company-specific risk be diversified away by investing in both Cardio Diagnostics and ECARX Holdings 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 ECARX Holdings 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 ECARX Holdings Class, you can compare the effects of market volatilities on Cardio Diagnostics and ECARX Holdings 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 ECARX Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardio Diagnostics and ECARX Holdings.

Diversification Opportunities for Cardio Diagnostics and ECARX Holdings

-0.53

Correlation Coefficient

Cardio Diagnostics  ECARX Holdings

Excellent diversification

The 3 months correlation between Cardio and ECARX is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cardio Diagnostics Holdings and ECARX Holdings Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECARX Holdings Class 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 ECARX Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECARX Holdings Class has no effect on the direction of Cardio Diagnostics i.e., Cardio Diagnostics and ECARX Holdings go up and down completely randomly.

Pair Corralation between Cardio Diagnostics and ECARX Holdings

Given the investment horizon of 90 days Cardio Diagnostics Holdings is expected to under-perform the ECARX Holdings. In addition to that, Cardio Diagnostics is 1.28 times more volatile than ECARX Holdings Class. It trades about -0.15 of its total potential returns per unit of risk. ECARX Holdings Class is currently generating about 0.07 per unit of volatility. If you would invest  145.00  in ECARX Holdings Class on May 2, 2025 and sell it today you would earn a total of  26.00  from holding ECARX Holdings Class or generate 17.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Cardio Diagnostics Holdings  vs.  ECARX Holdings Class

Cardio Diagnostics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cardio Diagnostics Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

ECARX Holdings Class

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ECARX Holdings Class are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, ECARX Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cardio Diagnostics and ECARX Holdings

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

The idea behind Cardio Diagnostics Holdings and ECARX Holdings Class 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.