Correlation Between Getaround and PBTS Old

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

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

Diversification Opportunities for Getaround and PBTS Old

0.0

Correlation Coefficient

Getaround  PBTS Old

Pay attention - limited upside

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

Pair Corralation between Getaround and PBTS Old

Given the investment horizon of 90 days Getaround is expected to under-perform the PBTS Old. But the otc stock apears to be less risky and, when comparing its historical volatility, Getaround is 9.01 times less risky than PBTS Old. The otc stock trades about 0.0 of its potential returns per unit of risk. The PBTS Old is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  360.00  in PBTS Old on October 16, 2024 and sell it today you would lose (330.00) from holding PBTS Old or give up 91.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	33.97%
Values	Daily Returns

Getaround  vs.  PBTS Old

Getaround

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Getaround has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Getaround is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

PBTS Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PBTS Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PBTS Old is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Getaround and PBTS Old

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

The idea behind Getaround and PBTS 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.