Correlation Between PTC and TC Traders
Can any of the company-specific risk be diversified away by investing in both PTC and TC Traders 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 TC Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTC Inc and TC Traders Club, you can compare the effects of market volatilities on PTC and TC Traders 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 TC Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTC and TC Traders.
Diversification Opportunities for PTC and TC Traders
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PTC and TRAD3 is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding PTC Inc and TC Traders Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Traders Club 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 TC Traders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Traders Club has no effect on the direction of PTC i.e., PTC and TC Traders go up and down completely randomly.
Pair Corralation between PTC and TC Traders
Considering the 90-day investment horizon PTC Inc is expected to generate 0.22 times more return on investment than TC Traders. However, PTC Inc is 4.45 times less risky than TC Traders. It trades about 0.03 of its potential returns per unit of risk. TC Traders Club is currently generating about -0.02 per unit of risk. If you would invest 19,882 in PTC Inc on July 20, 2025 and sell it today you would earn a total of 404.00 from holding PTC Inc or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
PTC Inc vs. TC Traders Club
Performance |
| Timeline |
| PTC Inc |
| TC Traders Club |
PTC and TC Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTC and TC Traders
The main advantage of trading using opposite PTC and TC Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTC position performs unexpectedly, TC Traders 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 TC Traders will offset losses from the drop in TC Traders' long position.The idea behind PTC Inc and TC Traders Club 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.| TC Traders vs. Unity Software | TC Traders vs. Waldencast Acquisition Corp | TC Traders vs. Neogrid Participaes SA | TC Traders vs. PTC Inc |
Check out your portfolio center.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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |