How is the Protection stat calculated?

Protection is a factor of the percent damage reduction that comes from both armor and the chance to dodge in order to show you which item will actually protect you better.

It takes into account

• Armor
• Strength (since armor is based on strength)
• Dodge Chance
• Dexterity (since dodge is based on dexterity)
• Any stats that increases armor or dodge chance from passive skills, such as the Monk's Seize the Initiative passive which adds the Monk's dexterity value to their armor value.

As of patch 1.0.3:

Resist values will now be taken into effect when calculating the Protection comparison stat (the Protection value is an average protection estimate of all your resists)

However, this will not take the Monk's One With Everything Passive into account properly. I found an item that would reportedly increase my Protection due to a difference in resistances, but in reality it decreases both my resistances and armor.