Correlation Between Indaptus Therapeutics and Protagenic Therapeutics

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Can any of the company-specific risk be diversified away by investing in both Indaptus Therapeutics and Protagenic Therapeutics 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 Indaptus Therapeutics and Protagenic Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indaptus Therapeutics and Protagenic Therapeutics, you can compare the effects of market volatilities on Indaptus Therapeutics and Protagenic Therapeutics 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 Indaptus Therapeutics with a short position of Protagenic Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indaptus Therapeutics and Protagenic Therapeutics.

Diversification Opportunities for Indaptus Therapeutics and Protagenic Therapeutics

0.45
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Indaptus and Protagenic is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Indaptus Therapeutics and Protagenic Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protagenic Therapeutics and Indaptus Therapeutics 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 Indaptus Therapeutics are associated (or correlated) with Protagenic Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protagenic Therapeutics has no effect on the direction of Indaptus Therapeutics i.e., Indaptus Therapeutics and Protagenic Therapeutics go up and down completely randomly.

Pair Corralation between Indaptus Therapeutics and Protagenic Therapeutics

Given the investment horizon of 90 days Indaptus Therapeutics is expected to under-perform the Protagenic Therapeutics. In addition to that, Indaptus Therapeutics is 1.59 times more volatile than Protagenic Therapeutics. It trades about -0.17 of its total potential returns per unit of risk. Protagenic Therapeutics is currently generating about -0.1 per unit of volatility. If you would invest  355.00  in Protagenic Therapeutics on August 28, 2025 and sell it today you would lose (132.00) from holding Protagenic Therapeutics or give up 37.18% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Indaptus Therapeutics  vs.  Protagenic Therapeutics

 Performance 
       Timeline  
Indaptus Therapeutics 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Indaptus Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
Protagenic Therapeutics 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Protagenic Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Indaptus Therapeutics and Protagenic Therapeutics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Indaptus Therapeutics and Protagenic Therapeutics

The main advantage of trading using opposite Indaptus Therapeutics and Protagenic Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indaptus Therapeutics position performs unexpectedly, Protagenic Therapeutics 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 Protagenic Therapeutics will offset losses from the drop in Protagenic Therapeutics' long position.
The idea behind Indaptus Therapeutics and Protagenic Therapeutics 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 Stocks Directory module to find actively traded stocks across global markets.

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