Correlation Between PTC and Aspen Technology
Can any of the company-specific risk be diversified away by investing in both PTC and Aspen Technology 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 PTC and Aspen Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTC Inc and Aspen Technology, you can compare the effects of market volatilities on PTC and Aspen Technology 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 PTC with a short position of Aspen Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTC and Aspen Technology.
Diversification Opportunities for PTC and Aspen Technology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PTC and Aspen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding PTC Inc and Aspen Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Technology and PTC 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 PTC Inc are associated (or correlated) with Aspen Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Technology has no effect on the direction of PTC i.e., PTC and Aspen Technology go up and down completely randomly.
Pair Corralation between PTC and Aspen Technology
Considering the 90-day investment horizon PTC Inc is expected to generate 1.77 times more return on investment than Aspen Technology. However, PTC is 1.77 times more volatile than Aspen Technology. It trades about 0.2 of its potential returns per unit of risk. Aspen Technology is currently generating about 0.2 per unit of risk. If you would invest 18,525 in PTC Inc on August 29, 2024 and sell it today you would earn a total of 1,401 from holding PTC Inc or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTC Inc vs. Aspen Technology
Performance |
| Timeline |
| PTC Inc |
| Aspen Technology |
PTC and Aspen Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTC and Aspen Technology
The main advantage of trading using opposite PTC and Aspen Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTC position performs unexpectedly, Aspen Technology 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 Aspen Technology will offset losses from the drop in Aspen Technology's long position.| PTC vs. SAP SE ADR | PTC vs. Tyler Technologies | PTC vs. Roper Technologies, Common | PTC vs. Cadence Design Systems |
| Aspen Technology vs. Bentley Systems | Aspen Technology vs. Tyler Technologies | Aspen Technology vs. Blackbaud | Aspen Technology vs. SSC Technologies Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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