Correlation Between TOR Minerals and Pro Dex

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

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

Diversification Opportunities for TOR Minerals and Pro Dex

0.0

Correlation Coefficient

TOR Minerals  Pro Dex

Pay attention - limited upside

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

Pair Corralation between TOR Minerals and Pro Dex

If you would invest  4,781  in Pro Dex on September 15, 2024 and sell it today you would earn a total of  163.00  from holding Pro Dex or generate 3.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

TOR Minerals International  vs.  Pro Dex

TOR Minerals Interna

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pro Dex

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pro Dex are ranked lower than 13 (%) 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.

Pair Trading with TOR Minerals and Pro Dex

The main advantage of trading using opposite TOR Minerals and Pro Dex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOR Minerals 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 TOR Minerals International 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.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.