Correlation Between Repro Med and Pro Dex
Can any of the company-specific risk be diversified away by investing in both Repro Med 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 Repro Med and Pro Dex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repro Med Systems and Pro Dex, you can compare the effects of market volatilities on Repro Med 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 Repro Med with a short position of Pro Dex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repro Med and Pro Dex.
Diversification Opportunities for Repro Med and Pro Dex
Good diversification
The 3 months correlation between Repro and Pro is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Repro Med Systems and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex and Repro Med 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 Repro Med Systems 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 Repro Med i.e., Repro Med and Pro Dex go up and down completely randomly.
Pair Corralation between Repro Med and Pro Dex
Given the investment horizon of 90 days Repro Med Systems is expected to generate 0.3 times more return on investment than Pro Dex. However, Repro Med Systems is 3.31 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 -0.03 per unit of risk. If you would invest 389.00 in Repro Med Systems on November 2, 2024 and sell it today you would earn a total of 37.00 from holding Repro Med Systems or generate 9.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repro Med Systems vs. Pro Dex
Performance |
| Timeline |
| Repro Med Systems |
| Pro Dex |
Repro Med and Pro Dex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repro Med and Pro Dex
The main advantage of trading using opposite Repro Med and Pro Dex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repro Med 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.| Repro Med vs. Precision Optics, | Repro Med vs. InfuSystems Holdings | Repro Med vs. Utah Medical Products | Repro Med vs. Milestone Scientific |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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