Correlation Between ZEN Graphene and Pro Dex
Can any of the company-specific risk be diversified away by investing in both ZEN Graphene 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 ZEN Graphene and Pro Dex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZEN Graphene Solutions and Pro Dex, you can compare the effects of market volatilities on ZEN Graphene 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 ZEN Graphene with a short position of Pro Dex. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZEN Graphene and Pro Dex.
Diversification Opportunities for ZEN Graphene and Pro Dex
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ZEN and Pro is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding ZEN Graphene Solutions and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex and ZEN Graphene 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 ZEN Graphene Solutions 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 ZEN Graphene i.e., ZEN Graphene and Pro Dex go up and down completely randomly.
Pair Corralation between ZEN Graphene and Pro Dex
Given the investment horizon of 90 days ZEN Graphene is expected to generate 5.6 times less return on investment than Pro Dex. In addition to that, ZEN Graphene is 1.23 times more volatile than Pro Dex. It trades about 0.03 of its total potential returns per unit of risk. Pro Dex is currently generating about 0.19 per unit of volatility. If you would invest 1,953 in Pro Dex on August 31, 2024 and sell it today you would earn a total of 3,147 from holding Pro Dex or generate 161.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZEN Graphene Solutions vs. Pro Dex
Performance |
| Timeline |
| ZEN Graphene Solutions |
| Pro Dex |
ZEN Graphene and Pro Dex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZEN Graphene and Pro Dex
The main advantage of trading using opposite ZEN Graphene and Pro Dex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZEN Graphene 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.| ZEN Graphene vs. Milestone Scientific | ZEN Graphene vs. Pro Dex | ZEN Graphene vs. Top Glove | ZEN Graphene vs. Precision Optics, |
| 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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