Correlation Between Pro Dex and Repro Med
Can any of the company-specific risk be diversified away by investing in both Pro Dex and Repro Med 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 Repro Med into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Dex and Repro Med Systems, you can compare the effects of market volatilities on Pro Dex and Repro Med 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 Repro Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Dex and Repro Med.
Diversification Opportunities for Pro Dex and Repro Med
Significant diversification
The 3 months correlation between Pro and Repro is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pro Dex and Repro Med Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repro Med Systems 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 Repro Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repro Med Systems has no effect on the direction of Pro Dex i.e., Pro Dex and Repro Med go up and down completely randomly.
Pair Corralation between Pro Dex and Repro Med
Given the investment horizon of 90 days Pro Dex is expected to under-perform the Repro Med. In addition to that, Pro Dex is 1.2 times more volatile than Repro Med Systems. It trades about -0.07 of its total potential returns per unit of risk. Repro Med Systems is currently generating about 0.06 per unit of volatility. If you would invest 380.00 in Repro Med Systems on June 8, 2025 and sell it today you would earn a total of 26.00 from holding Repro Med Systems or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Dex vs. Repro Med Systems
Performance |
| Timeline |
| Pro Dex |
| Repro Med Systems |
Pro Dex and Repro Med Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Dex and Repro Med
The main advantage of trading using opposite Pro Dex and Repro Med positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Dex position performs unexpectedly, Repro Med 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 Repro Med will offset losses from the drop in Repro Med's long position.| Pro Dex vs. Electromed | Pro Dex vs. InfuSystems Holdings | Pro Dex vs. Repro Med Systems | Pro Dex vs. Milestone Scientific |
| Repro Med vs. DiaMedica Therapeutics | Repro Med vs. Electromed | Repro Med vs. InfuSystems Holdings | Repro Med vs. Iradimed Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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