Correlation Between Cardiff Oncology and Genprex

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

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

Diversification Opportunities for Cardiff Oncology and Genprex

0.58

Correlation Coefficient

Cardiff Oncology  Genprex

Very weak diversification

The 3 months correlation between Cardiff and Genprex is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cardiff Oncology and Genprex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genprex and Cardiff Oncology 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 Cardiff Oncology are associated (or correlated) with Genprex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genprex has no effect on the direction of Cardiff Oncology i.e., Cardiff Oncology and Genprex go up and down completely randomly.

Pair Corralation between Cardiff Oncology and Genprex

Given the investment horizon of 90 days Cardiff Oncology is expected to under-perform the Genprex. But the stock apears to be less risky and, when comparing its historical volatility, Cardiff Oncology is 1.89 times less risky than Genprex. The stock trades about -0.17 of its potential returns per unit of risk. The Genprex is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  28.00  in Genprex on July 17, 2025 and sell it today you would lose (3.00) from holding Genprex or give up 10.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Cardiff Oncology  vs.  Genprex

Cardiff Oncology

Risk-Adjusted Performance

Weakest

Over the last 90 days Cardiff Oncology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Genprex

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Genprex are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Genprex showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cardiff Oncology and Genprex

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

The idea behind Cardiff Oncology and Genprex 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.