Correlation Between Voip Pal and Cool Technologies

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

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

Diversification Opportunities for Voip Pal and Cool Technologies

0.63

Correlation Coefficient

Voip Pal  Cool Technologies

Poor diversification

The 3 months correlation between Voip and Cool is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Voip PalCom and Cool Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cool Technologies and Voip Pal 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 Voip PalCom are associated (or correlated) with Cool Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cool Technologies has no effect on the direction of Voip Pal i.e., Voip Pal and Cool Technologies go up and down completely randomly.

Pair Corralation between Voip Pal and Cool Technologies

Given the investment horizon of 90 days Voip PalCom is expected to generate 0.33 times more return on investment than Cool Technologies. However, Voip PalCom is 3.03 times less risky than Cool Technologies. It trades about -0.1 of its potential returns per unit of risk. Cool Technologies is currently generating about -0.13 per unit of risk. If you would invest  0.84  in Voip PalCom on May 4, 2025 and sell it today you would lose (0.23) from holding Voip PalCom or give up 27.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Voip PalCom  vs.  Cool Technologies

Voip PalCom

Risk-Adjusted Performance

Very Weak

Over the last 90 days Voip PalCom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Cool Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cool Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Voip Pal and Cool Technologies

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

The idea behind Voip PalCom and Cool Technologies 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.