Correlation Between AngioDynamics and Pro Dex

Can any of the company-specific risk be diversified away by investing in both AngioDynamics 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 AngioDynamics and Pro Dex into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AngioDynamics and Pro Dex, you can compare the effects of market volatilities on AngioDynamics 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 AngioDynamics with a short position of Pro Dex. Check out your portfolio center. Please also check ongoing floating volatility patterns of AngioDynamics and Pro Dex.

Diversification Opportunities for AngioDynamics and Pro Dex

-0.17

Correlation Coefficient

AngioDynamics  Pro Dex

Good diversification

The 3 months correlation between AngioDynamics and Pro is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding AngioDynamics and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex and AngioDynamics 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 AngioDynamics 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 AngioDynamics i.e., AngioDynamics and Pro Dex go up and down completely randomly.

Pair Corralation between AngioDynamics and Pro Dex

Given the investment horizon of 90 days AngioDynamics is expected to generate 1.01 times less return on investment than Pro Dex. In addition to that, AngioDynamics is 1.04 times more volatile than Pro Dex. It trades about 0.04 of its total potential returns per unit of risk. Pro Dex is currently generating about 0.04 per unit of volatility. If you would invest  4,591  in Pro Dex on December 30, 2024 and sell it today you would earn a total of  232.00  from holding Pro Dex or generate 5.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AngioDynamics  vs.  Pro Dex

AngioDynamics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AngioDynamics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, AngioDynamics displayed solid returns over the last few months and may actually be approaching a breakup point.

Pro Dex

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pro Dex are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Pro Dex showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AngioDynamics and Pro Dex

The main advantage of trading using opposite AngioDynamics and Pro Dex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AngioDynamics 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.

The idea behind AngioDynamics and Pro Dex pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.