Correlation Between Blue Bird and PTRA
Can any of the company-specific risk be diversified away by investing in both Blue Bird and PTRA 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 Blue Bird and PTRA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Bird Corp and PTRA, you can compare the effects of market volatilities on Blue Bird and PTRA 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 Blue Bird with a short position of PTRA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Bird and PTRA.
Diversification Opportunities for Blue Bird and PTRA
Very good diversification
The 3 months correlation between Blue and PTRA is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Blue Bird Corp and PTRA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTRA and Blue Bird 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 Blue Bird Corp are associated (or correlated) with PTRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTRA has no effect on the direction of Blue Bird i.e., Blue Bird and PTRA go up and down completely randomly.
Pair Corralation between Blue Bird and PTRA
Given the investment horizon of 90 days Blue Bird Corp is expected to generate 0.58 times more return on investment than PTRA. However, Blue Bird Corp is 1.74 times less risky than PTRA. It trades about 0.08 of its potential returns per unit of risk. PTRA is currently generating about -0.06 per unit of risk. If you would invest 1,250 in Blue Bird Corp on August 24, 2024 and sell it today you would earn a total of 2,758 from holding Blue Bird Corp or generate 220.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 32.06% |
| Values | Daily Returns |
Blue Bird Corp vs. PTRA
Performance |
| Timeline |
| Blue Bird Corp |
| PTRA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blue Bird and PTRA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Bird and PTRA
The main advantage of trading using opposite Blue Bird and PTRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Bird position performs unexpectedly, PTRA 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 PTRA will offset losses from the drop in PTRA's long position.| Blue Bird vs. Vicinity Motor Corp | Blue Bird vs. AYRO Inc | Blue Bird vs. Canoo Inc | Blue Bird vs. Hyzon Motors |
| PTRA vs. Faraday Future Intelligent | PTRA vs. Mullen Automotive | PTRA vs. Canoo Inc | PTRA vs. Hyzon Motors |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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