Correlation Between Protagenic Therapeutics and Creatd

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

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

Diversification Opportunities for Protagenic Therapeutics and Creatd

0.0

Correlation Coefficient

Protagenic Therapeutics  Creatd

Pay attention - limited upside

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

Pair Corralation between Protagenic Therapeutics and Creatd

If you would invest  0.45  in Protagenic Therapeutics on December 30, 2024 and sell it today you would lose (0.11) from holding Protagenic Therapeutics or give up 24.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Protagenic Therapeutics  vs.  Creatd Inc

Protagenic Therapeutics

Risk-Adjusted Performance

Modest

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

Creatd Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Creatd Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Creatd is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Protagenic Therapeutics and Creatd

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

The idea behind Protagenic Therapeutics and Creatd 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.