Correlation Between Cardio Diagnostics and SenesTech

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

Diversification Opportunities for Cardio Diagnostics and SenesTech

-0.3

Correlation Coefficient

Cardio Diagnostics  SenesTech

Very good diversification

The 3 months correlation between Cardio and SenesTech is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cardio Diagnostics Holdings and SenesTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SenesTech 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 SenesTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SenesTech has no effect on the direction of Cardio Diagnostics i.e., Cardio Diagnostics and SenesTech go up and down completely randomly.

Pair Corralation between Cardio Diagnostics and SenesTech

Assuming the 90 days horizon Cardio Diagnostics Holdings is expected to under-perform the SenesTech. But the stock apears to be less risky and, when comparing its historical volatility, Cardio Diagnostics Holdings is 1.51 times less risky than SenesTech. The stock trades about -0.07 of its potential returns per unit of risk. The SenesTech is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  512.00  in SenesTech on May 11, 2025 and sell it today you would lose (43.00) from holding SenesTech or give up 8.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	73.91%
Values	Daily Returns

Cardio Diagnostics Holdings  vs.  SenesTech

Cardio Diagnostics

Risk-Adjusted Performance

Weakest

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.

SenesTech

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SenesTech are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical and fundamental indicators, SenesTech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cardio Diagnostics and SenesTech

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

The idea behind Cardio Diagnostics Holdings and SenesTech 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.