Correlation Between UniCredit SpA and Cardio Diagnostics

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

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

Diversification Opportunities for UniCredit SpA and Cardio Diagnostics

-0.69

Correlation Coefficient

UniCredit SpA  Cardio Diagnostics

Excellent diversification

The 3 months correlation between UniCredit and Cardio is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding UniCredit SpA and Cardio Diagnostics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardio Diagnostics and UniCredit SpA 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 UniCredit SpA 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 UniCredit SpA i.e., UniCredit SpA and Cardio Diagnostics go up and down completely randomly.

Pair Corralation between UniCredit SpA and Cardio Diagnostics

Assuming the 90 days horizon UniCredit SpA is expected to generate 3.0 times less return on investment than Cardio Diagnostics. But when comparing it to its historical volatility, UniCredit SpA is 2.27 times less risky than Cardio Diagnostics. It trades about 0.02 of its potential returns per unit of risk. Cardio Diagnostics Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  400.00  in Cardio Diagnostics Holdings on August 3, 2025 and sell it today you would earn a total of  4.00  from holding Cardio Diagnostics Holdings or generate 1.0% return on investment over 90 days.

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

UniCredit SpA  vs.  Cardio Diagnostics Holdings

UniCredit SpA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in UniCredit SpA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, UniCredit SpA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Cardio Diagnostics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cardio Diagnostics Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain forward indicators, Cardio Diagnostics may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with UniCredit SpA and Cardio Diagnostics

The main advantage of trading using opposite UniCredit SpA and Cardio Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UniCredit SpA 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 UniCredit SpA 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.