Correlation Between Optex Systems and Probility Media

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

By analyzing existing cross correlation between Optex Systems Holdings, and Probility Media Corp, you can compare the effects of market volatilities on Optex Systems and Probility Media 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 Optex Systems with a short position of Probility Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optex Systems and Probility Media.

Diversification Opportunities for Optex Systems and Probility Media

0.0

Correlation Coefficient

Optex Systems  Probility Media

Pay attention - limited upside

The 3 months correlation between Optex and Probility is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Optex Systems Holdings, and Probility Media Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Probility Media Corp and Optex Systems 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 Optex Systems Holdings, are associated (or correlated) with Probility Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Probility Media Corp has no effect on the direction of Optex Systems i.e., Optex Systems and Probility Media go up and down completely randomly.

Pair Corralation between Optex Systems and Probility Media

If you would invest  638.00  in Optex Systems Holdings, on April 30, 2025 and sell it today you would earn a total of  608.00  from holding Optex Systems Holdings, or generate 95.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Optex Systems Holdings,  vs.  Probility Media Corp

Optex Systems Holdings,

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Optex Systems Holdings, are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Optex Systems unveiled solid returns over the last few months and may actually be approaching a breakup point.

Probility Media Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Probility Media Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Probility Media is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Optex Systems and Probility Media

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

The idea behind Optex Systems Holdings, and Probility Media Corp 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.