Correlation Between PTRA and Canoo
Can any of the company-specific risk be diversified away by investing in both PTRA and Canoo 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 PTRA and Canoo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTRA and Canoo Inc, you can compare the effects of market volatilities on PTRA and Canoo 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 PTRA with a short position of Canoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTRA and Canoo.
Diversification Opportunities for PTRA and Canoo
Very good diversification
The 3 months correlation between PTRA and Canoo is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding PTRA and Canoo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canoo Inc and PTRA 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 PTRA are associated (or correlated) with Canoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canoo Inc has no effect on the direction of PTRA i.e., PTRA and Canoo go up and down completely randomly.
Pair Corralation between PTRA and Canoo
If you would invest 154.00 in PTRA on August 28, 2024 and sell it today you would earn a total of 0.00 from holding PTRA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
PTRA vs. Canoo Inc
Performance |
| Timeline |
| PTRA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Canoo Inc |
PTRA and Canoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTRA and Canoo
The main advantage of trading using opposite PTRA and Canoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTRA position performs unexpectedly, Canoo 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 Canoo will offset losses from the drop in Canoo's long position.| PTRA vs. Faraday Future Intelligent | PTRA vs. Mullen Automotive | PTRA vs. Canoo Inc | PTRA vs. Hyzon Motors |
| Canoo vs. Lucid Group | Canoo vs. Rivian Automotive | Canoo vs. Polestar Automotive Holding | Canoo vs. Mullen Automotive |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |