Correlation Between Pro Dex and Sysmex Corp
Can any of the company-specific risk be diversified away by investing in both Pro Dex and Sysmex Corp 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 Sysmex Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Dex and Sysmex Corp, you can compare the effects of market volatilities on Pro Dex and Sysmex Corp 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 Sysmex Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Dex and Sysmex Corp.
Diversification Opportunities for Pro Dex and Sysmex Corp
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pro and Sysmex is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Pro Dex and Sysmex Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysmex Corp 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 Sysmex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysmex Corp has no effect on the direction of Pro Dex i.e., Pro Dex and Sysmex Corp go up and down completely randomly.
Pair Corralation between Pro Dex and Sysmex Corp
Given the investment horizon of 90 days Pro Dex is expected to generate 2.15 times more return on investment than Sysmex Corp. However, Pro Dex is 2.15 times more volatile than Sysmex Corp. It trades about 0.16 of its potential returns per unit of risk. Sysmex Corp is currently generating about 0.04 per unit of risk. If you would invest 1,710 in Pro Dex on August 27, 2024 and sell it today you would earn a total of 2,965 from holding Pro Dex or generate 173.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Dex vs. Sysmex Corp
Performance |
| Timeline |
| Pro Dex |
| Sysmex Corp |
Pro Dex and Sysmex Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Dex and Sysmex Corp
The main advantage of trading using opposite Pro Dex and Sysmex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Dex position performs unexpectedly, Sysmex Corp 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 Sysmex Corp will offset losses from the drop in Sysmex Corp's long position.| Pro Dex vs. Coloplast A | Pro Dex vs. Straumann Holding AG | Pro Dex vs. Nephros | Pro Dex vs. InfuSystems Holdings |
| Sysmex Corp vs. Straumann Holding AG | Sysmex Corp vs. Coloplast AS | Sysmex Corp vs. Essilor International SA | Sysmex Corp vs. EssilorLuxottica Socit anonyme |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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