Correlation Between Cardio Diagnostics and Avantor

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

Diversification Opportunities for Cardio Diagnostics and Avantor

-0.66

Correlation Coefficient

Cardio Diagnostics  Avantor

Excellent diversification

The 3 months correlation between Cardio and Avantor is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cardio Diagnostics Holdings and Avantor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantor 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 Avantor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantor has no effect on the direction of Cardio Diagnostics i.e., Cardio Diagnostics and Avantor go up and down completely randomly.

Pair Corralation between Cardio Diagnostics and Avantor

Assuming the 90 days horizon Cardio Diagnostics Holdings is expected to under-perform the Avantor. In addition to that, Cardio Diagnostics is 2.5 times more volatile than Avantor. It trades about -0.12 of its total potential returns per unit of risk. Avantor is currently generating about -0.03 per unit of volatility. If you would invest  1,263  in Avantor on May 4, 2025 and sell it today you would lose (127.00) from holding Avantor or give up 10.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	87.1%
Values	Daily Returns

Cardio Diagnostics Holdings  vs.  Avantor

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 unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Avantor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Avantor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest inconsistent performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Cardio Diagnostics and Avantor

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

The idea behind Cardio Diagnostics Holdings and Avantor 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.