Correlation Between Protek Capital and AirIQ

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

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

Diversification Opportunities for Protek Capital and AirIQ

0.0

Correlation Coefficient

Protek Capital  AirIQ

Pay attention - limited upside

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

Pair Corralation between Protek Capital and AirIQ

Given the investment horizon of 90 days Protek Capital is expected to under-perform the AirIQ. In addition to that, Protek Capital is 7.68 times more volatile than AirIQ Inc. It trades about -0.13 of its total potential returns per unit of risk. AirIQ Inc is currently generating about -0.2 per unit of volatility. If you would invest  35.00  in AirIQ Inc on September 5, 2024 and sell it today you would lose (7.00) from holding AirIQ Inc or give up 20.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Protek Capital  vs.  AirIQ Inc

Protek Capital

Risk-Adjusted Performance

0 of 100

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 unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

AirIQ Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AirIQ Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Protek Capital and AirIQ

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

The idea behind Protek Capital and AirIQ 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.