Correlation Between Haemonetics and Pro Dex
Can any of the company-specific risk be diversified away by investing in both Haemonetics and Pro Dex 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 Haemonetics and Pro Dex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haemonetics and Pro Dex, you can compare the effects of market volatilities on Haemonetics and Pro Dex 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 Haemonetics with a short position of Pro Dex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haemonetics and Pro Dex.
Diversification Opportunities for Haemonetics and Pro Dex
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haemonetics and Pro is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Haemonetics and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex and Haemonetics 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 Haemonetics are associated (or correlated) with Pro Dex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Dex has no effect on the direction of Haemonetics i.e., Haemonetics and Pro Dex go up and down completely randomly.
Pair Corralation between Haemonetics and Pro Dex
Considering the 90-day investment horizon Haemonetics is expected to under-perform the Pro Dex. But the stock apears to be less risky and, when comparing its historical volatility, Haemonetics is 2.81 times less risky than Pro Dex. The stock trades about -0.26 of its potential returns per unit of risk. The Pro Dex is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 4,636 in Pro Dex on November 2, 2024 and sell it today you would lose (341.00) from holding Pro Dex or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haemonetics vs. Pro Dex
Performance |
| Timeline |
| Haemonetics |
| Pro Dex |
Haemonetics and Pro Dex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haemonetics and Pro Dex
The main advantage of trading using opposite Haemonetics and Pro Dex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haemonetics position performs unexpectedly, Pro Dex 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 Pro Dex will offset losses from the drop in Pro Dex's long position.| Haemonetics vs. Merit Medical Systems | Haemonetics vs. AngioDynamics | Haemonetics vs. AptarGroup | Haemonetics vs. Envista Holdings Corp |
| Pro Dex vs. Coloplast A | Pro Dex vs. Straumann Holding AG | Pro Dex vs. Nephros | Pro Dex vs. InfuSystems Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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