Correlation Between PTC and OLB
Can any of the company-specific risk be diversified away by investing in both PTC and OLB 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 OLB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTC Inc and OLB Group, you can compare the effects of market volatilities on PTC and OLB 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 OLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTC and OLB.
Diversification Opportunities for PTC and OLB
Very good diversification
The 3 months correlation between PTC and OLB is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PTC Inc and OLB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLB Group 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 OLB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLB Group has no effect on the direction of PTC i.e., PTC and OLB go up and down completely randomly.
Pair Corralation between PTC and OLB
Considering the 90-day investment horizon PTC Inc is expected to generate 0.18 times more return on investment than OLB. However, PTC Inc is 5.58 times less risky than OLB. It trades about 0.08 of its potential returns per unit of risk. OLB Group is currently generating about -0.01 per unit of risk. If you would invest 13,743 in PTC Inc on August 31, 2024 and sell it today you would earn a total of 6,263 from holding PTC Inc or generate 45.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
PTC Inc vs. OLB Group
Performance |
| Timeline |
| PTC Inc |
| OLB Group |
PTC and OLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTC and OLB
The main advantage of trading using opposite PTC and OLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTC position performs unexpectedly, OLB 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 OLB will offset losses from the drop in OLB's long position.| PTC vs. SAP SE ADR | PTC vs. Tyler Technologies | PTC vs. Roper Technologies, Common | PTC vs. Cadence Design Systems |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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