Correlation Between Protek Capital and Peer To

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

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

Diversification Opportunities for Protek Capital and Peer To

0.0

Correlation Coefficient

Protek Capital  Peer To

Pay attention - limited upside

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

Pair Corralation between Protek Capital and Peer To

Given the investment horizon of 90 days Protek Capital is expected to under-perform the Peer To. But the pink sheet apears to be less risky and, when comparing its historical volatility, Protek Capital is 2.15 times less risky than Peer To. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Peer To Peer is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.02  in Peer To Peer on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Peer To Peer or generate 0.0% return on investment over 90 days.

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

Protek Capital  vs.  Peer To Peer

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.

Peer To Peer

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Peer To Peer are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Peer To reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Protek Capital and Peer To

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

The idea behind Protek Capital and Peer To Peer 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.