Correlation Between Icahn Enterprises and PTL

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

By analyzing existing cross correlation between Icahn Enterprises LP and PTL LTD Ordinary, you can compare the effects of market volatilities on Icahn Enterprises and PTL 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 Icahn Enterprises with a short position of PTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icahn Enterprises and PTL.

Diversification Opportunities for Icahn Enterprises and PTL

-0.68

Correlation Coefficient

Icahn Enterprises  PTL

Excellent diversification

The 3 months correlation between Icahn and PTL is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Icahn Enterprises LP and PTL LTD Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTL LTD Ordinary and Icahn Enterprises 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 Icahn Enterprises LP are associated (or correlated) with PTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTL LTD Ordinary has no effect on the direction of Icahn Enterprises i.e., Icahn Enterprises and PTL go up and down completely randomly.

Pair Corralation between Icahn Enterprises and PTL

Considering the 90-day investment horizon Icahn Enterprises LP is expected to generate 0.07 times more return on investment than PTL. However, Icahn Enterprises LP is 13.8 times less risky than PTL. It trades about 0.12 of its potential returns per unit of risk. PTL LTD Ordinary is currently generating about -0.06 per unit of risk. If you would invest  919.00  in Icahn Enterprises LP on October 24, 2024 and sell it today you would earn a total of  34.00  from holding Icahn Enterprises LP or generate 3.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Icahn Enterprises LP  vs.  PTL LTD Ordinary

Icahn Enterprises

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Icahn Enterprises LP has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

PTL LTD Ordinary

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PTL LTD Ordinary are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting essential indicators, PTL exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Icahn Enterprises and PTL

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

The idea behind Icahn Enterprises LP and PTL LTD Ordinary 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.