Correlation Between InfuSystems Holdings and Daxor

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

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

Diversification Opportunities for InfuSystems Holdings and Daxor

0.15

Correlation Coefficient

InfuSystems Holdings  Daxor

Average diversification

The 3 months correlation between InfuSystems and Daxor is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor and InfuSystems Holdings 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 InfuSystems Holdings are associated (or correlated) with Daxor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daxor has no effect on the direction of InfuSystems Holdings i.e., InfuSystems Holdings and Daxor go up and down completely randomly.

Pair Corralation between InfuSystems Holdings and Daxor

Given the investment horizon of 90 days InfuSystems Holdings is expected to generate 1.31 times more return on investment than Daxor. However, InfuSystems Holdings is 1.31 times more volatile than Daxor. It trades about 0.15 of its potential returns per unit of risk. Daxor is currently generating about 0.07 per unit of risk. If you would invest  633.00  in InfuSystems Holdings on August 31, 2024 and sell it today you would earn a total of  253.00  from holding InfuSystems Holdings or generate 39.97% return on investment over 90 days.

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

InfuSystems Holdings  vs.  Daxor

InfuSystems Holdings

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in InfuSystems Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, InfuSystems Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Daxor

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Daxor are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Daxor reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with InfuSystems Holdings and Daxor

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

The idea behind InfuSystems Holdings and Daxor 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.