Correlation Between Pro Dex and Key Tronic

Can any of the company-specific risk be diversified away by investing in both Pro Dex and Key Tronic 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 Key Tronic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pro Dex and Key Tronic, you can compare the effects of market volatilities on Pro Dex and Key Tronic 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 Key Tronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Dex and Key Tronic.

Diversification Opportunities for Pro Dex and Key Tronic

-0.71

Correlation Coefficient

Pro Dex  Key Tronic

Pay attention - limited upside

The 3 months correlation between Pro and Key is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Pro Dex and Key Tronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Key Tronic 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 Key Tronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Key Tronic has no effect on the direction of Pro Dex i.e., Pro Dex and Key Tronic go up and down completely randomly.

Pair Corralation between Pro Dex and Key Tronic

Given the investment horizon of 90 days Pro Dex is expected to under-perform the Key Tronic. In addition to that, Pro Dex is 1.9 times more volatile than Key Tronic. It trades about -0.16 of its total potential returns per unit of risk. Key Tronic is currently generating about 0.05 per unit of volatility. If you would invest  304.00  in Key Tronic on July 27, 2025 and sell it today you would earn a total of  21.00  from holding Key Tronic or generate 6.91% return on investment over 90 days.

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

Pro Dex  vs.  Key Tronic

Pro Dex

Risk-Adjusted Performance

Weakest

Over the last 90 days Pro Dex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Key Tronic

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Key Tronic are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Key Tronic may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Pro Dex and Key Tronic

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

The idea behind Pro Dex and Key Tronic 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.