Correlation Between Cardio Diagnostics and SurModics

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

Diversification Opportunities for Cardio Diagnostics and SurModics

-0.25

Correlation Coefficient

Cardio Diagnostics  SurModics

Very good diversification

The 3 months correlation between Cardio and SurModics is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cardio Diagnostics Holdings and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics 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 SurModics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SurModics has no effect on the direction of Cardio Diagnostics i.e., Cardio Diagnostics and SurModics go up and down completely randomly.

Pair Corralation between Cardio Diagnostics and SurModics

Given the investment horizon of 90 days Cardio Diagnostics Holdings is expected to under-perform the SurModics. In addition to that, Cardio Diagnostics is 1.34 times more volatile than SurModics. It trades about -0.09 of its total potential returns per unit of risk. SurModics is currently generating about 0.28 per unit of volatility. If you would invest  3,133  in SurModics on May 16, 2025 and sell it today you would earn a total of  666.00  from holding SurModics or generate 21.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Cardio Diagnostics Holdings  vs.  SurModics

Cardio Diagnostics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cardio Diagnostics Holdings are ranked lower than 2 (%) 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 September 2025.

SurModics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SurModics are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, SurModics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cardio Diagnostics and SurModics

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

The idea behind Cardio Diagnostics Holdings and SurModics 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.