Correlation Between RenovaCare and Protokinetix

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

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

Diversification Opportunities for RenovaCare and Protokinetix

0.0

Correlation Coefficient

RenovaCare  Protokinetix

Pay attention - limited upside

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

Pair Corralation between RenovaCare and Protokinetix

If you would invest  0.90  in Protokinetix on December 1, 2024 and sell it today you would earn a total of  0.35  from holding Protokinetix or generate 38.89% return on investment over 90 days.

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

RenovaCare  vs.  Protokinetix

RenovaCare

Risk-Adjusted Performance

Very Weak

Over the last 90 days RenovaCare has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, RenovaCare is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Protokinetix

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Protokinetix are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Protokinetix showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with RenovaCare and Protokinetix

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

The idea behind RenovaCare and Protokinetix 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.