Correlation Between Daseke and PTSI Old

Can any of the company-specific risk be diversified away by investing in both Daseke and PTSI Old 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 Daseke and PTSI Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Daseke Inc and PTSI Old, you can compare the effects of market volatilities on Daseke and PTSI Old 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 Daseke with a short position of PTSI Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daseke and PTSI Old.

Diversification Opportunities for Daseke and PTSI Old

0.0

Correlation Coefficient

Daseke  PTSI Old

Pay attention - limited upside

The 3 months correlation between Daseke and PTSI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Daseke Inc and PTSI Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTSI Old and Daseke 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 Daseke Inc are associated (or correlated) with PTSI Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTSI Old has no effect on the direction of Daseke i.e., Daseke and PTSI Old go up and down completely randomly.

Pair Corralation between Daseke and PTSI Old

If you would invest (100.00) in PTSI Old on November 28, 2024 and sell it today you would earn a total of  100.00  from holding PTSI Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Daseke Inc  vs.  PTSI Old

Daseke Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daseke Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking signals, Daseke is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

PTSI Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days PTSI Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, PTSI Old is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Daseke and PTSI Old

The main advantage of trading using opposite Daseke and PTSI Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daseke position performs unexpectedly, PTSI Old 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 PTSI Old will offset losses from the drop in PTSI Old's long position.

The idea behind Daseke Inc and PTSI Old pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.