Correlation Between Volcon and Cardio Diagnostics

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

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

Diversification Opportunities for Volcon and Cardio Diagnostics

-0.55

Correlation Coefficient

Volcon  Cardio Diagnostics

Excellent diversification

The 3 months correlation between Volcon and Cardio is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Volcon Inc and Cardio Diagnostics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardio Diagnostics and Volcon 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 Volcon Inc 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 Volcon i.e., Volcon and Cardio Diagnostics go up and down completely randomly.

Pair Corralation between Volcon and Cardio Diagnostics

Given the investment horizon of 90 days Volcon Inc is expected to under-perform the Cardio Diagnostics. In addition to that, Volcon is 1.18 times more volatile than Cardio Diagnostics Holdings. It trades about -0.17 of its total potential returns per unit of risk. Cardio Diagnostics Holdings is currently generating about 0.01 per unit of volatility. If you would invest  421.00  in Cardio Diagnostics Holdings on July 28, 2025 and sell it today you would lose (16.00) from holding Cardio Diagnostics Holdings or give up 3.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	73.85%
Values	Daily Returns

Volcon Inc  vs.  Cardio Diagnostics Holdings

Volcon Inc

Risk-Adjusted Performance

Weakest

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

Cardio Diagnostics

Risk-Adjusted Performance

Weakest

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 very healthy forward indicators, Cardio Diagnostics is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Volcon and Cardio Diagnostics

The main advantage of trading using opposite Volcon and Cardio Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volcon 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 Volcon Inc 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.