Correlation Between Protocall Technologs and Kinaxis

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

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

Diversification Opportunities for Protocall Technologs and Kinaxis

-0.38

Correlation Coefficient

Protocall Technologs  Kinaxis

Very good diversification

The 3 months correlation between Protocall and Kinaxis is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Protocall Technologs and Kinaxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinaxis and Protocall Technologs 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 Protocall Technologs are associated (or correlated) with Kinaxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinaxis has no effect on the direction of Protocall Technologs i.e., Protocall Technologs and Kinaxis go up and down completely randomly.

Pair Corralation between Protocall Technologs and Kinaxis

Given the investment horizon of 90 days Protocall Technologs is expected to generate 7.5 times more return on investment than Kinaxis. However, Protocall Technologs is 7.5 times more volatile than Kinaxis. It trades about 0.04 of its potential returns per unit of risk. Kinaxis is currently generating about 0.21 per unit of risk. 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	98.41%
Values	Daily Returns

Protocall Technologs  vs.  Kinaxis

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 uncertain essential indicators, Protocall Technologs demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Kinaxis

Risk-Adjusted Performance

Solid

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 fragile fundamental indicators, Kinaxis reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Protocall Technologs and Kinaxis

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

The idea behind Protocall Technologs and Kinaxis 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 Global Correlations module to find global opportunities by holding instruments from different markets.