Correlation Between Utah Medical and Pro Dex
Can any of the company-specific risk be diversified away by investing in both Utah Medical 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 Utah Medical and Pro Dex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Utah Medical Products and Pro Dex, you can compare the effects of market volatilities on Utah Medical 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 Utah Medical with a short position of Pro Dex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Utah Medical and Pro Dex.
Diversification Opportunities for Utah Medical and Pro Dex
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Utah and Pro is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Utah Medical Products and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex and Utah Medical 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 Utah Medical Products 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 Utah Medical i.e., Utah Medical and Pro Dex go up and down completely randomly.
Pair Corralation between Utah Medical and Pro Dex
Given the investment horizon of 90 days Utah Medical Products is expected to under-perform the Pro Dex. But the stock apears to be less risky and, when comparing its historical volatility, Utah Medical Products is 2.94 times less risky than Pro Dex. The stock trades about -0.09 of its potential returns per unit of risk. The Pro Dex is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,595 in Pro Dex on January 10, 2025 and sell it today you would earn a total of 4,515 from holding Pro Dex or generate 283.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Utah Medical Products vs. Pro Dex
Performance |
| Timeline |
| Utah Medical Products |
| Pro Dex |
Utah Medical and Pro Dex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Utah Medical and Pro Dex
The main advantage of trading using opposite Utah Medical and Pro Dex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Utah Medical 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.| Utah Medical vs. Precision Optics, | Utah Medical vs. Repro Med Systems | Utah Medical vs. InfuSystems Holdings | Utah Medical 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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