Correlation Between Straumann Holding and Pro Dex
Can any of the company-specific risk be diversified away by investing in both Straumann Holding 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 Straumann Holding and Pro Dex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Straumann Holding AG and Pro Dex, you can compare the effects of market volatilities on Straumann Holding 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 Straumann Holding with a short position of Pro Dex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and Pro Dex.
Diversification Opportunities for Straumann Holding and Pro Dex
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Straumann and Pro is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex and Straumann Holding 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 Straumann Holding AG 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 Straumann Holding i.e., Straumann Holding and Pro Dex go up and down completely randomly.
Pair Corralation between Straumann Holding and Pro Dex
Assuming the 90 days horizon Straumann Holding AG is expected to under-perform the Pro Dex. But the pink sheet apears to be less risky and, when comparing its historical volatility, Straumann Holding AG is 1.95 times less risky than Pro Dex. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Pro Dex is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,967 in Pro Dex on August 24, 2024 and sell it today you would earn a total of 2,266 from holding Pro Dex or generate 115.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Straumann Holding AG vs. Pro Dex
Performance |
| Timeline |
| Straumann Holding |
| Pro Dex |
Straumann Holding and Pro Dex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Straumann Holding and Pro Dex
The main advantage of trading using opposite Straumann Holding and Pro Dex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding 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.| Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Coloplast AS | Straumann Holding vs. Essilor International SA | Straumann Holding vs. EssilorLuxottica Socit anonyme |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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