Correlation Between Pro Dex and Daxor
Can any of the company-specific risk be diversified away by investing in both Pro Dex and Daxor 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 Pro Dex and Daxor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Dex and Daxor, you can compare the effects of market volatilities on Pro Dex and Daxor 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 Pro Dex with a short position of Daxor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Dex and Daxor.
Diversification Opportunities for Pro Dex and Daxor
Modest diversification
The 3 months correlation between Pro and Daxor is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Pro Dex and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor and Pro Dex 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 Pro Dex are associated (or correlated) with Daxor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daxor has no effect on the direction of Pro Dex i.e., Pro Dex and Daxor go up and down completely randomly.
Pair Corralation between Pro Dex and Daxor
Given the investment horizon of 90 days Pro Dex is expected to generate 1.8 times more return on investment than Daxor. However, Pro Dex is 1.8 times more volatile than Daxor. It trades about 0.24 of its potential returns per unit of risk. Daxor is currently generating about 0.07 per unit of risk. If you would invest 2,333 in Pro Dex on August 30, 2024 and sell it today you would earn a total of 2,766 from holding Pro Dex or generate 118.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Pro Dex vs. Daxor
Performance |
| Timeline |
| Pro Dex |
| Daxor |
Pro Dex and Daxor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Dex and Daxor
The main advantage of trading using opposite Pro Dex and Daxor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Dex position performs unexpectedly, Daxor 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 Daxor will offset losses from the drop in Daxor's long position.| Pro Dex vs. Coloplast A | Pro Dex vs. Straumann Holding AG | Pro Dex vs. Nephros | Pro Dex vs. InfuSystems Holdings |
| Daxor vs. InfuSystems Holdings | Daxor vs. Meihua International Medical | Daxor vs. Repro Med Systems | Daxor vs. LeMaitre Vascular |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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