Correlation Between Alkami Technology and Protek Capital
Can any of the company-specific risk be diversified away by investing in both Alkami Technology 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 Alkami Technology and Protek Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkami Technology and Protek Capital, you can compare the effects of market volatilities on Alkami Technology 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 Alkami Technology with a short position of Protek Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkami Technology and Protek Capital.
Diversification Opportunities for Alkami Technology and Protek Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alkami and Protek is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alkami Technology and Protek Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protek Capital and Alkami Technology 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 Alkami Technology 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 Alkami Technology i.e., Alkami Technology and Protek Capital go up and down completely randomly.
Pair Corralation between Alkami Technology and Protek Capital
Given the investment horizon of 90 days Alkami Technology is expected to generate 53.32 times less return on investment than Protek Capital. But when comparing it to its historical volatility, Alkami Technology is 47.64 times less risky than Protek Capital. It trades about 0.1 of its potential returns per unit of risk. Protek Capital is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Protek Capital on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Protek Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alkami Technology vs. Protek Capital
Performance |
| Timeline |
| Alkami Technology |
| Protek Capital |
Alkami Technology and Protek Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkami Technology and Protek Capital
The main advantage of trading using opposite Alkami Technology and Protek Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkami Technology 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.| Alkami Technology vs. Agilysys | Alkami Technology vs. ADEIA P | Alkami Technology vs. Paycor HCM | Alkami Technology vs. Paylocity Holdng |
| Protek Capital vs. Waldencast Acquisition Corp | Protek Capital vs. Alkami Technology | Protek Capital vs. ADEIA P | Protek Capital vs. Paycor HCM |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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