Correlation Between Dentsply Sirona and Daxor

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

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

Diversification Opportunities for Dentsply Sirona and Daxor

0.17

Correlation Coefficient

Dentsply Sirona  Daxor

Average diversification

The 3 months correlation between Dentsply and Daxor is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dentsply Sirona and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor and Dentsply Sirona 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 Dentsply Sirona 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 Dentsply Sirona i.e., Dentsply Sirona and Daxor go up and down completely randomly.

Pair Corralation between Dentsply Sirona and Daxor

Given the investment horizon of 90 days Dentsply Sirona is expected to under-perform the Daxor. In addition to that, Dentsply Sirona is 1.38 times more volatile than Daxor. It trades about -0.08 of its total potential returns per unit of risk. Daxor is currently generating about -0.06 per unit of volatility. If you would invest  880.00  in Daxor on October 8, 2024 and sell it today you would lose (103.00) from holding Daxor or give up 11.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Dentsply Sirona  vs.  Daxor

Dentsply Sirona

Risk-Adjusted Performance

0 of 100

Very Weak

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

Daxor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Daxor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Dentsply Sirona and Daxor

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