Correlation Between Predictive Oncology and Pro Dex

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

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

Diversification Opportunities for Predictive Oncology and Pro Dex

-0.45

Correlation Coefficient

Predictive Oncology  Pro Dex

Very good diversification

The 3 months correlation between Predictive and Pro is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Predictive Oncology and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex and Predictive Oncology 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 Predictive Oncology are associated (or correlated) with Pro Dex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Dex has no effect on the direction of Predictive Oncology i.e., Predictive Oncology and Pro Dex go up and down completely randomly.

Pair Corralation between Predictive Oncology and Pro Dex

Given the investment horizon of 90 days Predictive Oncology is expected to generate 1.71 times less return on investment than Pro Dex. But when comparing it to its historical volatility, Predictive Oncology is 1.21 times less risky than Pro Dex. It trades about 0.03 of its potential returns per unit of risk. Pro Dex is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  4,411  in Pro Dex on May 26, 2025 and sell it today you would earn a total of  192.00  from holding Pro Dex or generate 4.35% return on investment over 90 days.

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

Predictive Oncology  vs.  Pro Dex

Predictive Oncology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Predictive Oncology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Predictive Oncology is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pro Dex

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pro Dex are ranked lower than 2 (%) 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.

Pair Trading with Predictive Oncology and Pro Dex

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

The idea behind Predictive Oncology and Pro Dex 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.