Correlation Between PTSI Old and Marten Transport

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

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

Diversification Opportunities for PTSI Old and Marten Transport

0.0

Correlation Coefficient

PTSI Old  Marten Transport

Pay attention - limited upside

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

Pair Corralation between PTSI Old and Marten Transport

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	0.0%
Values	Daily Returns

PTSI Old  vs.  Marten Transport

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.

Marten Transport

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marten Transport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with PTSI Old and Marten Transport

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

The idea behind PTSI Old and Marten Transport 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 Commodity Directory module to find actively traded commodities issued by global exchanges.