Correlation Between CurrentC Power and ProntoForms

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

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

Diversification Opportunities for CurrentC Power and ProntoForms

0.0

Correlation Coefficient

CurrentC Power  ProntoForms

Pay attention - limited upside

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

Pair Corralation between CurrentC Power and ProntoForms

If you would invest  12.00  in CurrentC Power on September 12, 2024 and sell it today you would earn a total of  8.00  from holding CurrentC Power or generate 66.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

CurrentC Power  vs.  ProntoForms

CurrentC Power

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CurrentC Power are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, CurrentC Power showed solid returns over the last few months and may actually be approaching a breakup point.

ProntoForms

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProntoForms has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ProntoForms is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CurrentC Power and ProntoForms

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

The idea behind CurrentC Power and ProntoForms 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..