Correlation Between Premium Catering and Proto Labs
Can any of the company-specific risk be diversified away by investing in both Premium Catering and Proto Labs 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 Premium Catering and Proto Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premium Catering Limited and Proto Labs, you can compare the effects of market volatilities on Premium Catering and Proto Labs 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 Premium Catering with a short position of Proto Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premium Catering and Proto Labs.
Diversification Opportunities for Premium Catering and Proto Labs
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Premium and Proto is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Premium Catering Limited and Proto Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proto Labs and Premium Catering 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 Premium Catering Limited are associated (or correlated) with Proto Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proto Labs has no effect on the direction of Premium Catering i.e., Premium Catering and Proto Labs go up and down completely randomly.
Pair Corralation between Premium Catering and Proto Labs
Allowing for the 90-day total investment horizon Premium Catering Limited is expected to under-perform the Proto Labs. In addition to that, Premium Catering is 3.77 times more volatile than Proto Labs. It trades about 0.0 of its total potential returns per unit of risk. Proto Labs is currently generating about 0.15 per unit of volatility. If you would invest 3,909 in Proto Labs on November 1, 2024 and sell it today you would earn a total of 222.00 from holding Proto Labs or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Premium Catering Limited vs. Proto Labs
Performance |
| Timeline |
| Premium Catering |
| Proto Labs |
Premium Catering and Proto Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premium Catering and Proto Labs
The main advantage of trading using opposite Premium Catering and Proto Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premium Catering position performs unexpectedly, Proto Labs 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 Proto Labs will offset losses from the drop in Proto Labs' long position.| Premium Catering vs. Kingdee International Software | Premium Catering vs. Integral Ad Science | Premium Catering vs. Pinterest | Premium Catering vs. Coupang LLC |
| Proto Labs vs. Northwest Pipe | Proto Labs vs. Tredegar | Proto Labs vs. Insteel Industries | Proto Labs vs. Ryerson Holding Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |