Correlation Between Milestone Scientific and Daxor

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

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

Diversification Opportunities for Milestone Scientific and Daxor

-0.11

Correlation Coefficient

Milestone Scientific  Daxor

Good diversification

The 3 months correlation between Milestone and Daxor is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Milestone Scientific and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor and Milestone Scientific 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 Milestone Scientific 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 Milestone Scientific i.e., Milestone Scientific and Daxor go up and down completely randomly.

Pair Corralation between Milestone Scientific and Daxor

Given the investment horizon of 90 days Milestone Scientific is expected to generate 2.35 times more return on investment than Daxor. However, Milestone Scientific is 2.35 times more volatile than Daxor. It trades about 0.1 of its potential returns per unit of risk. Daxor is currently generating about 0.03 per unit of risk. If you would invest  84.00  in Milestone Scientific on December 26, 2024 and sell it today you would earn a total of  24.00  from holding Milestone Scientific or generate 28.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Milestone Scientific  vs.  Daxor

Milestone Scientific

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Milestone Scientific are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Milestone Scientific unveiled solid returns over the last few months and may actually be approaching a breakup point.

Daxor

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Daxor are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Daxor is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Milestone Scientific and Daxor

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

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.