Correlation Between Mullen Automotive and PTRA

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

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

Diversification Opportunities for Mullen Automotive and PTRA

0.0

Correlation Coefficient

Mullen Automotive  PTRA

Pay attention - limited upside

The 3 months correlation between Mullen and PTRA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mullen Automotive and PTRA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTRA and Mullen Automotive 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 Mullen Automotive 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 Mullen Automotive i.e., Mullen Automotive and PTRA go up and down completely randomly.

Pair Corralation between Mullen Automotive 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

Mullen Automotive  vs.  PTRA

Mullen Automotive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mullen Automotive has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm 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 Mullen Automotive and PTRA

The main advantage of trading using opposite Mullen Automotive and PTRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mullen Automotive 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 Mullen Automotive 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.