Correlation Between Pro Dex and Scisparc

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

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

Diversification Opportunities for Pro Dex and Scisparc

-0.13

Correlation Coefficient

Pro Dex  Scisparc

Good diversification

The 3 months correlation between Pro and Scisparc is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Pro Dex and Scisparc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scisparc 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 Scisparc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scisparc has no effect on the direction of Pro Dex i.e., Pro Dex and Scisparc go up and down completely randomly.

Pair Corralation between Pro Dex and Scisparc

Given the investment horizon of 90 days Pro Dex is expected to generate 0.68 times more return on investment than Scisparc. However, Pro Dex is 1.47 times less risky than Scisparc. It trades about 0.04 of its potential returns per unit of risk. Scisparc is currently generating about -0.09 per unit of risk. If you would invest  4,494  in Pro Dex on May 5, 2025 and sell it today you would earn a total of  241.00  from holding Pro Dex or generate 5.36% return on investment over 90 days.

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

Pro Dex  vs.  Scisparc

Pro Dex

Risk-Adjusted Performance

Insignificant

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

Scisparc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Scisparc 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 basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Pro Dex and Scisparc

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

The idea behind Pro Dex and Scisparc 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.