Correlation Between Park City and PTSI Old

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

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

Diversification Opportunities for Park City and PTSI Old

0.0

Correlation Coefficient

Park City  PTSI Old

Pay attention - limited upside

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

Pair Corralation between Park City and PTSI Old

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

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

Park City Group  vs.  PTSI Old

Park City Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Park City Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Park City is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

PTSI Old

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Park City and PTSI Old

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

The idea behind Park City Group and PTSI 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.