Correlation Between Proficient Auto and Mesa Air

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

By analyzing existing cross correlation between Proficient Auto Logistics, and Mesa Air Group, you can compare the effects of market volatilities on Proficient Auto and Mesa Air 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 Proficient Auto with a short position of Mesa Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proficient Auto and Mesa Air.

Diversification Opportunities for Proficient Auto and Mesa Air

-0.13

Correlation Coefficient

Proficient Auto  Mesa Air

Good diversification

The 3 months correlation between Proficient and Mesa is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, and Mesa Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesa Air Group and Proficient Auto 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 Proficient Auto Logistics, are associated (or correlated) with Mesa Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesa Air Group has no effect on the direction of Proficient Auto i.e., Proficient Auto and Mesa Air go up and down completely randomly.

Pair Corralation between Proficient Auto and Mesa Air

Considering the 90-day investment horizon Proficient Auto Logistics, is expected to generate 1.45 times more return on investment than Mesa Air. However, Proficient Auto is 1.45 times more volatile than Mesa Air Group. It trades about 0.07 of its potential returns per unit of risk. Mesa Air Group is currently generating about -0.14 per unit of risk. If you would invest  787.00  in Proficient Auto Logistics, on December 29, 2024 and sell it today you would earn a total of  131.00  from holding Proficient Auto Logistics, or generate 16.65% return on investment over 90 days.

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

Proficient Auto Logistics,  vs.  Mesa Air Group

Proficient Auto Logi

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Proficient Auto Logistics, are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, Proficient Auto disclosed solid returns over the last few months and may actually be approaching a breakup point.

Mesa Air Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mesa Air Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Proficient Auto and Mesa Air

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

The idea behind Proficient Auto Logistics, and Mesa Air Group 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .