Correlation Between PTC and ANSYS

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

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

Diversification Opportunities for PTC and ANSYS

0.82

Correlation Coefficient

PTC  ANSYS

Very poor diversification

The 3 months correlation between PTC and ANSYS is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding PTC Inc and ANSYS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANSYS Inc and PTC 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 PTC Inc are associated (or correlated) with ANSYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANSYS Inc has no effect on the direction of PTC i.e., PTC and ANSYS go up and down completely randomly.

Pair Corralation between PTC and ANSYS

Considering the 90-day investment horizon PTC Inc is expected to generate 0.75 times more return on investment than ANSYS. However, PTC Inc is 1.34 times less risky than ANSYS. It trades about 0.06 of its potential returns per unit of risk. ANSYS Inc is currently generating about 0.04 per unit of risk. If you would invest  13,109  in PTC Inc on October 3, 2024 and sell it today you would earn a total of  5,278  from holding PTC Inc or generate 40.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	99.8%
Values	Daily Returns

PTC Inc  vs.  ANSYS Inc

PTC Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PTC Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, PTC is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

ANSYS Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANSYS Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, ANSYS may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with PTC and ANSYS

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

The idea behind PTC Inc and ANSYS Inc 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.