Correlation Between PAMT P and JetAI

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

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

Diversification Opportunities for PAMT P and JetAI

0.44

Correlation Coefficient

PAMT P  JetAI

Very weak diversification

The 3 months correlation between PAMT and JetAI is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding PAMT P and JetAI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetAI Inc and PAMT P 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 PAMT P are associated (or correlated) with JetAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetAI Inc has no effect on the direction of PAMT P i.e., PAMT P and JetAI go up and down completely randomly.

Pair Corralation between PAMT P and JetAI

Given the investment horizon of 90 days PAMT P is expected to generate 19.03 times less return on investment than JetAI. But when comparing it to its historical volatility, PAMT P is 1.2 times less risky than JetAI. It trades about 0.0 of its potential returns per unit of risk. JetAI Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  389.00  in JetAI Inc on April 25, 2025 and sell it today you would lose (5.00) from holding JetAI Inc or give up 1.29% of portfolio value over 90 days.

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

PAMT P  vs.  JetAI Inc

PAMT P

Risk-Adjusted Performance

Weak

Over the last 90 days PAMT P has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, PAMT P is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

JetAI Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JetAI Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, JetAI is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with PAMT P and JetAI

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

The idea behind PAMT P and JetAI 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.

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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.