Correlation Between Caduceus Software and Cogstate

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

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

Diversification Opportunities for Caduceus Software and Cogstate

-0.74

Correlation Coefficient

Caduceus Software  Cogstate

Pay attention - limited upside

The 3 months correlation between Caduceus and Cogstate is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Caduceus Software Systems and Cogstate Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogstate Limited and Caduceus Software 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 Caduceus Software Systems are associated (or correlated) with Cogstate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogstate Limited has no effect on the direction of Caduceus Software i.e., Caduceus Software and Cogstate go up and down completely randomly.

Pair Corralation between Caduceus Software and Cogstate

Given the investment horizon of 90 days Caduceus Software is expected to generate 2.39 times less return on investment than Cogstate. In addition to that, Caduceus Software is 4.81 times more volatile than Cogstate Limited. It trades about 0.01 of its total potential returns per unit of risk. Cogstate Limited is currently generating about 0.17 per unit of volatility. If you would invest  82.00  in Cogstate Limited on May 1, 2025 and sell it today you would earn a total of  38.00  from holding Cogstate Limited or generate 46.34% return on investment over 90 days.

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

Caduceus Software Systems  vs.  Cogstate Limited

Caduceus Software Systems

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Caduceus Software Systems are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Caduceus Software exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cogstate Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cogstate Limited are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Cogstate reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Caduceus Software and Cogstate

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

The idea behind Caduceus Software Systems and Cogstate Limited 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.