Correlation Between Kinaxis and Protocall Technologs

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

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

Diversification Opportunities for Kinaxis and Protocall Technologs

-0.19

Correlation Coefficient

Kinaxis  Protocall Technologs

Good diversification

The 3 months correlation between Kinaxis and Protocall is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kinaxis and Protocall Technologs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protocall Technologs and Kinaxis 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 Kinaxis are associated (or correlated) with Protocall Technologs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protocall Technologs has no effect on the direction of Kinaxis i.e., Kinaxis and Protocall Technologs go up and down completely randomly.

Pair Corralation between Kinaxis and Protocall Technologs

Assuming the 90 days horizon Kinaxis is expected to generate 1.54 times less return on investment than Protocall Technologs. But when comparing it to its historical volatility, Kinaxis is 7.44 times less risky than Protocall Technologs. It trades about 0.21 of its potential returns per unit of risk. Protocall Technologs is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2.50  in Protocall Technologs on April 23, 2025 and sell it today you would earn a total of  0.00  from holding Protocall Technologs or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Kinaxis  vs.  Protocall Technologs

Kinaxis

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kinaxis are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental indicators, Kinaxis reported solid returns over the last few months and may actually be approaching a breakup point.

Protocall Technologs

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Protocall Technologs are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak essential indicators, Protocall Technologs demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kinaxis and Protocall Technologs

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

The idea behind Kinaxis and Protocall Technologs 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.