Correlation Between Canoo and PTRA

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

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

Diversification Opportunities for Canoo and PTRA

0.0

Correlation Coefficient

Canoo  PTRA

Pay attention - limited upside

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

Pair Corralation between Canoo and PTRA

If you would invest (100.00) in PTRA on December 27, 2024 and sell it today you would earn a total of  100.00  from holding PTRA or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Canoo Inc  vs.  PTRA

Canoo Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Canoo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

PTRA

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Canoo and PTRA

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

The idea behind Canoo Inc and PTRA 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.