Correlation Between CardieX and RadNet

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

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

Diversification Opportunities for CardieX and RadNet

0.0

Correlation Coefficient

CardieX  RadNet

Pay attention - limited upside

The 3 months correlation between CardieX and RadNet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CardieX Limited and RadNet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RadNet Inc and CardieX 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 CardieX Limited are associated (or correlated) with RadNet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RadNet Inc has no effect on the direction of CardieX i.e., CardieX and RadNet go up and down completely randomly.

Pair Corralation between CardieX and RadNet

If you would invest  3,870  in RadNet Inc on February 26, 2024 and sell it today you would earn a total of  1,984  from holding RadNet Inc or generate 51.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

CardieX Limited  vs.  RadNet Inc

CardieX Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CardieX Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, CardieX is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

RadNet Inc

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in RadNet Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, RadNet unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CardieX and RadNet

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

The idea behind CardieX Limited and RadNet 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 Commodity Directory module to find actively traded commodities issued by global exchanges.