Correlation Between Axihub and Protek Capital

Can any of the company-specific risk be diversified away by investing in both Axihub 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 Axihub and Protek Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Axihub Inc and Protek Capital, you can compare the effects of market volatilities on Axihub 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 Axihub with a short position of Protek Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axihub and Protek Capital.

Diversification Opportunities for Axihub and Protek Capital

0.0

Correlation Coefficient

Axihub  Protek Capital

Pay attention - limited upside

The 3 months correlation between Axihub and Protek is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axihub Inc and Protek Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protek Capital and Axihub 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 Axihub Inc 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 Axihub i.e., Axihub and Protek Capital go up and down completely randomly.

Pair Corralation between Axihub and Protek Capital

If you would invest  0.01  in Protek Capital on December 4, 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	0.0%
Values	Daily Returns

Axihub Inc  vs.  Protek Capital

Axihub Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Axihub Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Axihub is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Protek Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Protek Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Protek Capital is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Axihub and Protek Capital

The main advantage of trading using opposite Axihub and Protek Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axihub 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.

The idea behind Axihub Inc and Protek Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.