Correlation Between Protek Capital and ANSYS

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

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

Diversification Opportunities for Protek Capital and ANSYS

0.0

Correlation Coefficient

Protek Capital  ANSYS

Pay attention - limited upside

The 3 months correlation between Protek and ANSYS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Protek Capital and ANSYS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANSYS Inc 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 ANSYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANSYS Inc has no effect on the direction of Protek Capital i.e., Protek Capital and ANSYS go up and down completely randomly.

Pair Corralation between Protek Capital and ANSYS

Given the investment horizon of 90 days Protek Capital is expected to under-perform the ANSYS. In addition to that, Protek Capital is 11.7 times more volatile than ANSYS Inc. It trades about -0.13 of its total potential returns per unit of risk. ANSYS Inc is currently generating about -0.09 per unit of volatility. If you would invest  33,792  in ANSYS Inc on December 28, 2024 and sell it today you would lose (2,103) from holding ANSYS Inc or give up 6.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Protek Capital  vs.  ANSYS Inc

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 inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

ANSYS Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ANSYS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ANSYS is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Protek Capital and ANSYS

The main advantage of trading using opposite Protek Capital and ANSYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protek Capital position performs unexpectedly, ANSYS 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 ANSYS will offset losses from the drop in ANSYS's long position.

The idea behind Protek Capital and ANSYS Inc 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.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.