Correlation Between InfuSystems Holdings and Pro Dex

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

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

Diversification Opportunities for InfuSystems Holdings and Pro Dex

-0.33

Correlation Coefficient

InfuSystems Holdings  Pro Dex

Very good diversification

The 3 months correlation between InfuSystems and Pro is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex and InfuSystems Holdings 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 InfuSystems Holdings 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 InfuSystems Holdings i.e., InfuSystems Holdings and Pro Dex go up and down completely randomly.

Pair Corralation between InfuSystems Holdings and Pro Dex

Given the investment horizon of 90 days InfuSystems Holdings is expected to under-perform the Pro Dex. But the stock apears to be less risky and, when comparing its historical volatility, InfuSystems Holdings is 1.63 times less risky than Pro Dex. The stock trades about -0.12 of its potential returns per unit of risk. The Pro Dex is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  4,591  in Pro Dex on December 29, 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

InfuSystems Holdings  vs.  Pro Dex

InfuSystems Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days InfuSystems Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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 InfuSystems Holdings and Pro Dex

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

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.