Correlation Between Repro Med and Daxor

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

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

Diversification Opportunities for Repro Med and Daxor

-0.64

Correlation Coefficient

Repro Med  Daxor

Excellent diversification

The 3 months correlation between Repro and Daxor is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Repro Med Systems and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor and Repro Med 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 Repro Med Systems are associated (or correlated) with Daxor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daxor has no effect on the direction of Repro Med i.e., Repro Med and Daxor go up and down completely randomly.

Pair Corralation between Repro Med and Daxor

Given the investment horizon of 90 days Repro Med Systems is expected to generate 1.61 times more return on investment than Daxor. However, Repro Med is 1.61 times more volatile than Daxor. It trades about 0.1 of its potential returns per unit of risk. Daxor is currently generating about -0.14 per unit of risk. If you would invest  365.00  in Repro Med Systems on November 20, 2024 and sell it today you would earn a total of  72.00  from holding Repro Med Systems or generate 19.73% return on investment over 90 days.

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

Repro Med Systems  vs.  Daxor

Repro Med Systems

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Repro Med Systems are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, Repro Med exhibited solid returns over the last few months and may actually be approaching a breakup point.

Daxor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daxor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Repro Med and Daxor

The main advantage of trading using opposite Repro Med and Daxor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repro Med position performs unexpectedly, Daxor 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 Daxor will offset losses from the drop in Daxor's long position.

The idea behind Repro Med Systems and Daxor 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.