Correlation Between Precision Optics, and Daxor

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

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

Diversification Opportunities for Precision Optics, and Daxor

0.41

Correlation Coefficient

Precision Optics,  Daxor

Very weak diversification

The 3 months correlation between Precision and Daxor is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Precision Optics, and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor and Precision Optics, 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 Precision Optics, 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 Precision Optics, i.e., Precision Optics, and Daxor go up and down completely randomly.

Pair Corralation between Precision Optics, and Daxor

Given the investment horizon of 90 days Precision Optics, is expected to under-perform the Daxor. In addition to that, Precision Optics, is 1.11 times more volatile than Daxor. It trades about -0.01 of its total potential returns per unit of risk. Daxor is currently generating about 0.01 per unit of volatility. If you would invest  825.00  in Daxor on December 4, 2024 and sell it today you would lose (55.00) from holding Daxor or give up 6.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	94.54%
Values	Daily Returns

Precision Optics,  vs.  Daxor

Precision Optics,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Precision Optics, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

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 April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Precision Optics, and Daxor

The main advantage of trading using opposite Precision Optics, and Daxor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Precision Optics, 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 Precision Optics, 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..