Correlation Between Repro Med and Precision Optics,

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

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

Diversification Opportunities for Repro Med and Precision Optics,

0.81

Correlation Coefficient

Repro Med  Precision Optics,

Very poor diversification

The 3 months correlation between Repro and Precision is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Repro Med Systems and Precision Optics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precision Optics, and Repro Med 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 Repro Med Systems are associated (or correlated) with Precision Optics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precision Optics, has no effect on the direction of Repro Med i.e., Repro Med and Precision Optics, go up and down completely randomly.

Pair Corralation between Repro Med and Precision Optics,

Given the investment horizon of 90 days Repro Med Systems is expected to generate 1.49 times more return on investment than Precision Optics,. However, Repro Med is 1.49 times more volatile than Precision Optics,. It trades about 0.11 of its potential returns per unit of risk. Precision Optics, is currently generating about 0.1 per unit of risk. If you would invest  275.00  in Repro Med Systems on May 1, 2025 and sell it today you would earn a total of  74.00  from holding Repro Med Systems or generate 26.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Repro Med Systems  vs.  Precision Optics,

Repro Med Systems

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Repro Med Systems are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, Repro Med exhibited solid returns over the last few months and may actually be approaching a breakup point.

Precision Optics,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Precision Optics, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady fundamental indicators, Precision Optics, demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Repro Med and Precision Optics,

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

The idea behind Repro Med Systems and Precision Optics, 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 CEOs Directory module to screen CEOs from public companies around the world.