Correlation Between Vivakor and PTL

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

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

Diversification Opportunities for Vivakor and PTL

-0.64

Correlation Coefficient

Vivakor  PTL

Excellent diversification

The 3 months correlation between Vivakor and PTL is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Vivakor and PTL LTD Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTL LTD Ordinary and Vivakor 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 Vivakor are associated (or correlated) with PTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTL LTD Ordinary has no effect on the direction of Vivakor i.e., Vivakor and PTL go up and down completely randomly.

Pair Corralation between Vivakor and PTL

Given the investment horizon of 90 days Vivakor is expected to under-perform the PTL. But the stock apears to be less risky and, when comparing its historical volatility, Vivakor is 2.55 times less risky than PTL. The stock trades about -0.22 of its potential returns per unit of risk. The PTL LTD Ordinary is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  762.00  in PTL LTD Ordinary on October 10, 2024 and sell it today you would earn a total of  338.00  from holding PTL LTD Ordinary or generate 44.36% return on investment over 90 days.

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

Vivakor  vs.  PTL LTD Ordinary

Vivakor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vivakor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

PTL LTD Ordinary

Risk-Adjusted Performance

16 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PTL LTD Ordinary are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile essential indicators, PTL exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vivakor and PTL

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

The idea behind Vivakor and PTL LTD Ordinary 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.