Correlation Between Coda Octopus and Safe Pro

Can any of the company-specific risk be diversified away by investing in both Coda Octopus and Safe Pro 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 Coda Octopus and Safe Pro into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Coda Octopus Group and Safe Pro Group, you can compare the effects of market volatilities on Coda Octopus and Safe Pro 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 Coda Octopus with a short position of Safe Pro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coda Octopus and Safe Pro.

Diversification Opportunities for Coda Octopus and Safe Pro

0.18

Correlation Coefficient

Coda Octopus  Safe Pro

Average diversification

The 3 months correlation between Coda and Safe is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Coda Octopus Group and Safe Pro Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe Pro Group and Coda Octopus 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 Coda Octopus Group are associated (or correlated) with Safe Pro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe Pro Group has no effect on the direction of Coda Octopus i.e., Coda Octopus and Safe Pro go up and down completely randomly.

Pair Corralation between Coda Octopus and Safe Pro

Given the investment horizon of 90 days Coda Octopus Group is expected to generate 0.55 times more return on investment than Safe Pro. However, Coda Octopus Group is 1.82 times less risky than Safe Pro. It trades about 0.07 of its potential returns per unit of risk. Safe Pro Group is currently generating about -0.1 per unit of risk. If you would invest  814.00  in Coda Octopus Group on September 15, 2025 and sell it today you would earn a total of  95.00  from holding Coda Octopus Group or generate 11.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Coda Octopus Group  vs.  Safe Pro Group

Coda Octopus Group

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Coda Octopus Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental indicators, Coda Octopus sustained solid returns over the last few months and may actually be approaching a breakup point.

Safe Pro Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Safe Pro Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Coda Octopus and Safe Pro

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

The idea behind Coda Octopus Group and Safe Pro Group 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.