Correlation Between Pressure Biosciences and Pro Dex

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

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

Diversification Opportunities for Pressure Biosciences and Pro Dex

0.0

Correlation Coefficient

Pressure Biosciences  Pro Dex

Pay attention - limited upside

The 3 months correlation between Pressure and Pro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pressure Biosciences and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex and Pressure Biosciences 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 Pressure Biosciences 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 Pressure Biosciences i.e., Pressure Biosciences and Pro Dex go up and down completely randomly.

Pair Corralation between Pressure Biosciences and Pro Dex

If you would invest (100.00) in Pressure Biosciences on December 5, 2024 and sell it today you would earn a total of  100.00  from holding Pressure Biosciences or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Pressure Biosciences  vs.  Pro Dex

Pressure Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pressure Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Pressure Biosciences is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pro Dex

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pro Dex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Pressure Biosciences and Pro Dex

The main advantage of trading using opposite Pressure Biosciences and Pro Dex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pressure Biosciences 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 Pressure Biosciences 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.