Correlation Between Predictmedix and Co Diagnostics

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

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

Diversification Opportunities for Predictmedix and Co Diagnostics

-0.21

Correlation Coefficient

Predictmedix  Co Diagnostics

Very good diversification

The 3 months correlation between Predictmedix and CODX is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Predictmedix and Co Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Co Diagnostics and Predictmedix 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 Predictmedix are associated (or correlated) with Co Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Co Diagnostics has no effect on the direction of Predictmedix i.e., Predictmedix and Co Diagnostics go up and down completely randomly.

Pair Corralation between Predictmedix and Co Diagnostics

Assuming the 90 days horizon Predictmedix is expected to under-perform the Co Diagnostics. In addition to that, Predictmedix is 2.1 times more volatile than Co Diagnostics. It trades about -0.02 of its total potential returns per unit of risk. Co Diagnostics is currently generating about 0.09 per unit of volatility. If you would invest  24.00  in Co Diagnostics on May 22, 2025 and sell it today you would earn a total of  5.00  from holding Co Diagnostics or generate 20.83% return on investment over 90 days.

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

Predictmedix  vs.  Co Diagnostics

Predictmedix

Risk-Adjusted Performance

Weakest

Over the last 90 days Predictmedix 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 September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Co Diagnostics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Co Diagnostics are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating fundamental indicators, Co Diagnostics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Predictmedix and Co Diagnostics

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

The idea behind Predictmedix and Co Diagnostics 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.

Check out your portfolio center.

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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.