Correlation Between PAVmed and CVRx

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

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

Diversification Opportunities for PAVmed and CVRx

-0.16

Correlation Coefficient

PAVmed  CVRx

Good diversification

The 3 months correlation between PAVmed and CVRx is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding PAVmed Inc and CVRx Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVRx Inc and PAVmed 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 PAVmed Inc are associated (or correlated) with CVRx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVRx Inc has no effect on the direction of PAVmed i.e., PAVmed and CVRx go up and down completely randomly.

Pair Corralation between PAVmed and CVRx

Given the investment horizon of 90 days PAVmed Inc is expected to under-perform the CVRx. But the stock apears to be less risky and, when comparing its historical volatility, PAVmed Inc is 1.96 times less risky than CVRx. The stock trades about -0.14 of its potential returns per unit of risk. The CVRx Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  743.00  in CVRx Inc on May 6, 2025 and sell it today you would earn a total of  12.00  from holding CVRx Inc or generate 1.62% return on investment over 90 days.

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

PAVmed Inc  vs.  CVRx Inc

PAVmed Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days PAVmed Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

CVRx Inc

Risk-Adjusted Performance

Insignificant

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

Pair Trading with PAVmed and CVRx

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

The idea behind PAVmed Inc and CVRx Inc 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.