Correlation Between Protek Capital and CurrentC Power
Can any of the company-specific risk be diversified away by investing in both Protek Capital and CurrentC Power 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 Protek Capital and CurrentC Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protek Capital and CurrentC Power, you can compare the effects of market volatilities on Protek Capital and CurrentC Power 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 Protek Capital with a short position of CurrentC Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protek Capital and CurrentC Power.
Diversification Opportunities for Protek Capital and CurrentC Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Protek and CurrentC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Protek Capital and CurrentC Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CurrentC Power and Protek Capital 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 Protek Capital are associated (or correlated) with CurrentC Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CurrentC Power has no effect on the direction of Protek Capital i.e., Protek Capital and CurrentC Power go up and down completely randomly.
Pair Corralation between Protek Capital and CurrentC Power
Given the investment horizon of 90 days Protek Capital is expected to generate 1.02 times less return on investment than CurrentC Power. In addition to that, Protek Capital is 1.82 times more volatile than CurrentC Power. It trades about 0.06 of its total potential returns per unit of risk. CurrentC Power is currently generating about 0.12 per unit of volatility. 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 |
Protek Capital vs. CurrentC Power
Performance |
| Timeline |
| Protek Capital |
| CurrentC Power |
Protek Capital and CurrentC Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protek Capital and CurrentC Power
The main advantage of trading using opposite Protek Capital and CurrentC Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protek Capital position performs unexpectedly, CurrentC Power 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 CurrentC Power will offset losses from the drop in CurrentC Power's long position.| Protek Capital vs. On4 Communications | Protek Capital vs. Bowmo Inc | Protek Capital vs. BHPA Inc | Protek Capital vs. AB International Group |
| CurrentC Power vs. Weibo Corp | CurrentC Power vs. Franklin Wireless Corp | CurrentC Power vs. Integral Ad Science | CurrentC Power vs. Zhihu Inc ADR |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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