Correlation Between ImmuCell and Pro Dex
Can any of the company-specific risk be diversified away by investing in both ImmuCell 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 ImmuCell and Pro Dex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuCell and Pro Dex, you can compare the effects of market volatilities on ImmuCell 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 ImmuCell with a short position of Pro Dex. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuCell and Pro Dex.
Diversification Opportunities for ImmuCell and Pro Dex
Good diversification
The 3 months correlation between ImmuCell and Pro is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding ImmuCell and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex and ImmuCell 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 ImmuCell 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 ImmuCell i.e., ImmuCell and Pro Dex go up and down completely randomly.
Pair Corralation between ImmuCell and Pro Dex
Given the investment horizon of 90 days ImmuCell is expected to generate 2.43 times less return on investment than Pro Dex. But when comparing it to its historical volatility, ImmuCell is 2.14 times less risky than Pro Dex. It trades about 0.25 of its potential returns per unit of risk. Pro Dex is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 3,694 in Pro Dex on September 2, 2024 and sell it today you would earn a total of 1,406 from holding Pro Dex or generate 38.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ImmuCell vs. Pro Dex
Performance |
| Timeline |
| ImmuCell |
| Pro Dex |
ImmuCell and Pro Dex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuCell and Pro Dex
The main advantage of trading using opposite ImmuCell and Pro Dex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuCell 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.| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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