Correlation Between Pro Dex and ReposiTrak
Can any of the company-specific risk be diversified away by investing in both Pro Dex and ReposiTrak 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 ReposiTrak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Dex and ReposiTrak, you can compare the effects of market volatilities on Pro Dex and ReposiTrak 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 ReposiTrak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Dex and ReposiTrak.
Diversification Opportunities for Pro Dex and ReposiTrak
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pro and ReposiTrak is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Pro Dex and ReposiTrak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReposiTrak 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 ReposiTrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReposiTrak has no effect on the direction of Pro Dex i.e., Pro Dex and ReposiTrak go up and down completely randomly.
Pair Corralation between Pro Dex and ReposiTrak
Given the investment horizon of 90 days Pro Dex is expected to generate 1.7 times more return on investment than ReposiTrak. However, Pro Dex is 1.7 times more volatile than ReposiTrak. It trades about -0.09 of its potential returns per unit of risk. ReposiTrak is currently generating about -0.15 per unit of risk. If you would invest 4,623 in Pro Dex on July 14, 2025 and sell it today you would lose (1,290) from holding Pro Dex or give up 27.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Dex vs. ReposiTrak
Performance |
| Timeline |
| Pro Dex |
| ReposiTrak |
Pro Dex and ReposiTrak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Dex and ReposiTrak
The main advantage of trading using opposite Pro Dex and ReposiTrak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Dex position performs unexpectedly, ReposiTrak 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 ReposiTrak will offset losses from the drop in ReposiTrak's long position.| Pro Dex vs. Dynatronics | Pro Dex vs. Electromed | Pro Dex vs. InfuSystems Holdings | Pro Dex vs. Repro Med Systems |
| ReposiTrak vs. Hyperscale Data, | ReposiTrak vs. Salesforce | ReposiTrak vs. Pacific Online Limited | ReposiTrak vs. Datatec Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |