Correlation Between CurrentC Power and Protek Capital
Can any of the company-specific risk be diversified away by investing in both CurrentC Power and Protek Capital 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 CurrentC Power and Protek Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CurrentC Power and Protek Capital, you can compare the effects of market volatilities on CurrentC Power and Protek Capital 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 CurrentC Power with a short position of Protek Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of CurrentC Power and Protek Capital.
Diversification Opportunities for CurrentC Power and Protek Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CurrentC and Protek is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CurrentC Power and Protek Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protek Capital and CurrentC Power 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 CurrentC Power are associated (or correlated) with Protek Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protek Capital has no effect on the direction of CurrentC Power i.e., CurrentC Power and Protek Capital go up and down completely randomly.
Pair Corralation between CurrentC Power and Protek Capital
Given the investment horizon of 90 days CurrentC Power is expected to generate 0.55 times more return on investment than Protek Capital. However, CurrentC Power is 1.82 times less risky than Protek Capital. It trades about 0.12 of its potential returns per unit of risk. Protek Capital is currently generating about 0.06 per unit of risk. If you would invest 25.00 in CurrentC Power on October 24, 2024 and sell it today you would lose (18.50) from holding CurrentC Power or give up 74.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
CurrentC Power vs. Protek Capital
Performance |
| Timeline |
| CurrentC Power |
| Protek Capital |
CurrentC Power and Protek Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CurrentC Power and Protek Capital
The main advantage of trading using opposite CurrentC Power and Protek Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CurrentC Power position performs unexpectedly, Protek Capital 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 Protek Capital will offset losses from the drop in Protek Capital's long position.| CurrentC Power vs. Weibo Corp | CurrentC Power vs. Franklin Wireless Corp | CurrentC Power vs. Integral Ad Science | CurrentC Power vs. Zhihu Inc ADR |
| Protek Capital vs. On4 Communications | Protek Capital vs. Bowmo Inc | Protek Capital vs. BHPA Inc | Protek Capital vs. AB International Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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