Correlation Between Progress Software and Protagenic Therapeutics
Can any of the company-specific risk be diversified away by investing in both Progress Software and Protagenic Therapeutics 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 Progress Software and Protagenic Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progress Software and Protagenic Therapeutics, you can compare the effects of market volatilities on Progress Software and Protagenic Therapeutics 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 Progress Software with a short position of Protagenic Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progress Software and Protagenic Therapeutics.
Diversification Opportunities for Progress Software and Protagenic Therapeutics
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Progress and Protagenic is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Progress Software and Protagenic Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protagenic Therapeutics and Progress Software 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 Progress Software are associated (or correlated) with Protagenic Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protagenic Therapeutics has no effect on the direction of Progress Software i.e., Progress Software and Protagenic Therapeutics go up and down completely randomly.
Pair Corralation between Progress Software and Protagenic Therapeutics
Given the investment horizon of 90 days Progress Software is expected to generate 0.24 times more return on investment than Protagenic Therapeutics. However, Progress Software is 4.24 times less risky than Protagenic Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Protagenic Therapeutics is currently generating about -0.02 per unit of risk. If you would invest 5,637 in Progress Software on November 19, 2024 and sell it today you would earn a total of 95.00 from holding Progress Software or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Progress Software vs. Protagenic Therapeutics
Performance |
| Timeline |
| Progress Software |
| Protagenic Therapeutics |
Progress Software and Protagenic Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progress Software and Protagenic Therapeutics
The main advantage of trading using opposite Progress Software and Protagenic Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progress Software position performs unexpectedly, Protagenic Therapeutics 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 Protagenic Therapeutics will offset losses from the drop in Protagenic Therapeutics' long position.| Progress Software vs. ePlus inc | Progress Software vs. Agilysys | Progress Software vs. Sapiens International | Progress Software vs. PDF Solutions |
| Protagenic Therapeutics vs. Sino Biopharmaceutical Ltd | Protagenic Therapeutics vs. Eledon Pharmaceuticals | Protagenic Therapeutics vs. Rezolute | Protagenic Therapeutics vs. XOMA Corporation |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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