Correlation Between Applied DNA and Pyxus International

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

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

Diversification Opportunities for Applied DNA and Pyxus International

-0.55

Correlation Coefficient

Applied DNA  Pyxus International

Excellent diversification

The 3 months correlation between Applied and Pyxus is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Applied DNA Sciences and Pyxus International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxus International and Applied DNA 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 Applied DNA Sciences are associated (or correlated) with Pyxus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxus International has no effect on the direction of Applied DNA i.e., Applied DNA and Pyxus International go up and down completely randomly.

Pair Corralation between Applied DNA and Pyxus International

Given the investment horizon of 90 days Applied DNA Sciences is expected to under-perform the Pyxus International. In addition to that, Applied DNA is 2.19 times more volatile than Pyxus International. It trades about -0.15 of its total potential returns per unit of risk. Pyxus International is currently generating about 0.04 per unit of volatility. If you would invest  395.00  in Pyxus International on May 19, 2025 and sell it today you would earn a total of  20.00  from holding Pyxus International or generate 5.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Applied DNA Sciences  vs.  Pyxus International

Applied DNA Sciences

Risk-Adjusted Performance

Weakest

Over the last 90 days Applied DNA Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pyxus International

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Pyxus International are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Pyxus International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Applied DNA and Pyxus International

The main advantage of trading using opposite Applied DNA and Pyxus International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied DNA position performs unexpectedly, Pyxus International 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 Pyxus International will offset losses from the drop in Pyxus International's long position.

The idea behind Applied DNA Sciences and Pyxus International 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.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.