Correlation Between Alta Equipment and PAMT P

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

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

Diversification Opportunities for Alta Equipment and PAMT P

0.69

Correlation Coefficient

Alta Equipment  PAMT P

Poor diversification

The 3 months correlation between Alta and PAMT is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Alta Equipment Group and PAMT P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAMT P and Alta Equipment 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 Alta Equipment Group are associated (or correlated) with PAMT P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAMT P has no effect on the direction of Alta Equipment i.e., Alta Equipment and PAMT P go up and down completely randomly.

Pair Corralation between Alta Equipment and PAMT P

Given the investment horizon of 90 days Alta Equipment Group is expected to under-perform the PAMT P. In addition to that, Alta Equipment is 1.04 times more volatile than PAMT P. It trades about -0.11 of its total potential returns per unit of risk. PAMT P is currently generating about -0.07 per unit of volatility. If you would invest  1,330  in PAMT P on July 26, 2025 and sell it today you would lose (210.00) from holding PAMT P or give up 15.79% of portfolio value over 90 days.

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

Alta Equipment Group  vs.  PAMT P

Alta Equipment Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Alta Equipment Group 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 nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

PAMT P

Risk-Adjusted Performance

Weakest

Over the last 90 days PAMT P has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Alta Equipment and PAMT P

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

The idea behind Alta Equipment Group and PAMT P 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.