Correlation Between PS International and Air T
Can any of the company-specific risk be diversified away by investing in both PS International and Air T 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 PS International and Air T into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PS International Group and Air T Inc, you can compare the effects of market volatilities on PS International and Air T 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 PS International with a short position of Air T. Check out your portfolio center. Please also check ongoing floating volatility patterns of PS International and Air T.
Diversification Opportunities for PS International and Air T
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PSIG and Air is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding PS International Group and Air T Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air T Inc and PS International 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 PS International Group are associated (or correlated) with Air T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air T Inc has no effect on the direction of PS International i.e., PS International and Air T go up and down completely randomly.
Pair Corralation between PS International and Air T
Given the investment horizon of 90 days PS International Group is expected to under-perform the Air T. In addition to that, PS International is 3.29 times more volatile than Air T Inc. It trades about -0.05 of its total potential returns per unit of risk. Air T Inc is currently generating about 0.03 per unit of volatility. If you would invest 1,705 in Air T Inc on August 30, 2024 and sell it today you would earn a total of 22.00 from holding Air T Inc or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 20.13% |
| Values | Daily Returns |
PS International Group vs. Air T Inc
Performance |
| Timeline |
| PS International |
| Air T Inc |
PS International and Air T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PS International and Air T
The main advantage of trading using opposite PS International and Air T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PS International position performs unexpectedly, Air T 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 Air T will offset losses from the drop in Air T's long position.| PS International vs. Pinterest | PS International vs. PACCAR Inc | PS International vs. U Power Limited | PS International vs. Cars Inc |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |