Correlation Between Protek Capital and Auddia

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

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

Diversification Opportunities for Protek Capital and Auddia

0.0

Correlation Coefficient

Protek Capital  Auddia

Pay attention - limited upside

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

Pair Corralation between Protek Capital and Auddia

Given the investment horizon of 90 days Protek Capital is expected to under-perform the Auddia. But the pink sheet apears to be less risky and, when comparing its historical volatility, Protek Capital is 1.49 times less risky than Auddia. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Auddia Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2.47  in Auddia Inc on December 29, 2024 and sell it today you would lose (0.58) from holding Auddia Inc or give up 23.48% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	65.57%
Values	Daily Returns

Protek Capital  vs.  Auddia 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.

Auddia Inc

Risk-Adjusted Performance

Insignificant

Over the last 90 days Auddia Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly unsteady fundamental indicators, Auddia showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Protek Capital and Auddia

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

The idea behind Protek Capital and Auddia 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.