Correlation Between Pro Dex and Femasys

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

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

Diversification Opportunities for Pro Dex and Femasys

-0.29

Correlation Coefficient

Pro Dex  Femasys

Very good diversification

The 3 months correlation between Pro and Femasys is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Pro Dex and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys and Pro Dex 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 Pro Dex are associated (or correlated) with Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of Pro Dex i.e., Pro Dex and Femasys go up and down completely randomly.

Pair Corralation between Pro Dex and Femasys

Given the investment horizon of 90 days Pro Dex is expected to generate 1.47 times less return on investment than Femasys. In addition to that, Pro Dex is 1.17 times more volatile than Femasys. It trades about 0.05 of its total potential returns per unit of risk. Femasys is currently generating about 0.08 per unit of volatility. If you would invest  110.00  in Femasys on December 28, 2024 and sell it today you would earn a total of  19.00  from holding Femasys or generate 17.27% return on investment over 90 days.

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

Pro Dex  vs.  Femasys

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.

Femasys

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Femasys are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Femasys showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pro Dex and Femasys

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

The idea behind Pro Dex and Femasys 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.