Correlation Between PROEN Corp and Interlink Telecom

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

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

Diversification Opportunities for PROEN Corp and Interlink Telecom

0.85

Correlation Coefficient

PROEN Corp  Interlink Telecom

Very poor diversification

The 3 months correlation between PROEN and Interlink is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding PROEN Corp Public and Interlink Telecom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Telecom Public and PROEN Corp 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 PROEN Corp Public are associated (or correlated) with Interlink Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Telecom Public has no effect on the direction of PROEN Corp i.e., PROEN Corp and Interlink Telecom go up and down completely randomly.

Pair Corralation between PROEN Corp and Interlink Telecom

Assuming the 90 days trading horizon PROEN Corp Public is expected to under-perform the Interlink Telecom. In addition to that, PROEN Corp is 1.14 times more volatile than Interlink Telecom Public. It trades about -0.11 of its total potential returns per unit of risk. Interlink Telecom Public is currently generating about -0.04 per unit of volatility. If you would invest  136.00  in Interlink Telecom Public on July 27, 2025 and sell it today you would lose (12.00) from holding Interlink Telecom Public or give up 8.82% of portfolio value over 90 days.

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

PROEN Corp Public  vs.  Interlink Telecom Public

PROEN Corp Public

Risk-Adjusted Performance

Weakest

Over the last 90 days PROEN Corp Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Interlink Telecom Public

Risk-Adjusted Performance

Weakest

Over the last 90 days Interlink Telecom Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with PROEN Corp and Interlink Telecom

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

The idea behind PROEN Corp Public and Interlink Telecom Public 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.