Correlation Between ProStar Holdings and 01 Communique

Can any of the company-specific risk be diversified away by investing in both ProStar Holdings and 01 Communique 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 ProStar Holdings and 01 Communique into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ProStar Holdings and 01 Communique Laboratory, you can compare the effects of market volatilities on ProStar Holdings and 01 Communique 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 ProStar Holdings with a short position of 01 Communique. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProStar Holdings and 01 Communique.

Diversification Opportunities for ProStar Holdings and 01 Communique

-0.76

Correlation Coefficient

ProStar Holdings  01 Communique

Pay attention - limited upside

The 3 months correlation between ProStar and OONEF is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding ProStar Holdings and 01 Communique Laboratory in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 01 Communique Laboratory and ProStar Holdings 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 ProStar Holdings are associated (or correlated) with 01 Communique. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 01 Communique Laboratory has no effect on the direction of ProStar Holdings i.e., ProStar Holdings and 01 Communique go up and down completely randomly.

Pair Corralation between ProStar Holdings and 01 Communique

Assuming the 90 days horizon ProStar Holdings is expected to under-perform the 01 Communique. In addition to that, ProStar Holdings is 1.12 times more volatile than 01 Communique Laboratory. It trades about -0.03 of its total potential returns per unit of risk. 01 Communique Laboratory is currently generating about 0.18 per unit of volatility. If you would invest  18.00  in 01 Communique Laboratory on May 4, 2025 and sell it today you would earn a total of  15.00  from holding 01 Communique Laboratory or generate 83.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ProStar Holdings  vs.  01 Communique Laboratory

ProStar Holdings

Risk-Adjusted Performance

Very Weak

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

01 Communique Laboratory

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in 01 Communique Laboratory are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, 01 Communique reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ProStar Holdings and 01 Communique

The main advantage of trading using opposite ProStar Holdings and 01 Communique positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProStar Holdings position performs unexpectedly, 01 Communique 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 01 Communique will offset losses from the drop in 01 Communique's long position.

The idea behind ProStar Holdings and 01 Communique Laboratory 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.