Correlation Between Cerberus Cyber and Modular Medical

Can any of the company-specific risk be diversified away by investing in both Cerberus Cyber and Modular Medical 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 Cerberus Cyber and Modular Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cerberus Cyber Sentinel and Modular Medical, you can compare the effects of market volatilities on Cerberus Cyber and Modular Medical 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 Cerberus Cyber with a short position of Modular Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cerberus Cyber and Modular Medical.

Diversification Opportunities for Cerberus Cyber and Modular Medical

0.46

Correlation Coefficient

Cerberus Cyber  Modular Medical

Very weak diversification

The 3 months correlation between Cerberus and Modular is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cerberus Cyber Sentinel and Modular Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modular Medical and Cerberus Cyber 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 Cerberus Cyber Sentinel are associated (or correlated) with Modular Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modular Medical has no effect on the direction of Cerberus Cyber i.e., Cerberus Cyber and Modular Medical go up and down completely randomly.

Pair Corralation between Cerberus Cyber and Modular Medical

Given the investment horizon of 90 days Cerberus Cyber Sentinel is expected to generate 2.21 times more return on investment than Modular Medical. However, Cerberus Cyber is 2.21 times more volatile than Modular Medical. It trades about 0.04 of its potential returns per unit of risk. Modular Medical is currently generating about -0.08 per unit of risk. If you would invest  101.00  in Cerberus Cyber Sentinel on May 9, 2025 and sell it today you would lose (6.92) from holding Cerberus Cyber Sentinel or give up 6.85% of portfolio value over 90 days.

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

Cerberus Cyber Sentinel  vs.  Modular Medical

Cerberus Cyber Sentinel

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Cerberus Cyber Sentinel are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Cerberus Cyber displayed solid returns over the last few months and may actually be approaching a breakup point.

Modular Medical

Risk-Adjusted Performance

Weakest

Over the last 90 days Modular Medical 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 fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Cerberus Cyber and Modular Medical

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

The idea behind Cerberus Cyber Sentinel and Modular Medical 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.