Correlation Between Dupont De and Cardio Diagnostics

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

By analyzing existing cross correlation between Dupont De Nemours and Cardio Diagnostics Holdings, you can compare the effects of market volatilities on Dupont De and Cardio Diagnostics 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 Dupont De with a short position of Cardio Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Cardio Diagnostics.

Diversification Opportunities for Dupont De and Cardio Diagnostics

-0.48

Correlation Coefficient

Dupont De  Cardio Diagnostics

Very good diversification

The 3 months correlation between Dupont and Cardio is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Cardio Diagnostics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardio Diagnostics and Dupont De 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 Dupont De Nemours are associated (or correlated) with Cardio Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardio Diagnostics has no effect on the direction of Dupont De i.e., Dupont De and Cardio Diagnostics go up and down completely randomly.

Pair Corralation between Dupont De and Cardio Diagnostics

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.2 times more return on investment than Cardio Diagnostics. However, Dupont De Nemours is 5.08 times less risky than Cardio Diagnostics. It trades about 0.09 of its potential returns per unit of risk. Cardio Diagnostics Holdings is currently generating about -0.14 per unit of risk. If you would invest  6,566  in Dupont De Nemours on May 1, 2025 and sell it today you would earn a total of  654.00  from holding Dupont De Nemours or generate 9.96% return on investment over 90 days.

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

Dupont De Nemours  vs.  Cardio Diagnostics Holdings

Dupont De Nemours

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dupont De Nemours are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Dupont De may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Cardio Diagnostics

Risk-Adjusted Performance

Very Weak

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 weak performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Dupont De and Cardio Diagnostics

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

The idea behind Dupont De Nemours and Cardio Diagnostics Holdings 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.