Correlation Between PTC and Slate Office

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

By analyzing existing cross correlation between PTC Inc and Slate Office REIT, you can compare the effects of market volatilities on PTC and Slate Office 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 Slate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTC and Slate Office.

Diversification Opportunities for PTC and Slate Office

0.5

Correlation Coefficient

PTC  Slate Office

Very weak diversification

The 3 months correlation between PTC and Slate is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding PTC Inc and Slate Office REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Office REIT 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 Slate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Office REIT has no effect on the direction of PTC i.e., PTC and Slate Office go up and down completely randomly.

Pair Corralation between PTC and Slate Office

Considering the 90-day investment horizon PTC is expected to generate 1.74 times less return on investment than Slate Office. But when comparing it to its historical volatility, PTC Inc is 1.19 times less risky than Slate Office. It trades about 0.1 of its potential returns per unit of risk. Slate Office REIT is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  23.00  in Slate Office REIT on July 6, 2025 and sell it today you would earn a total of  7.00  from holding Slate Office REIT or generate 30.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

PTC Inc  vs.  Slate Office REIT

PTC Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in PTC Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, PTC exhibited solid returns over the last few months and may actually be approaching a breakup point.

Slate Office REIT

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Slate Office REIT are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Slate Office reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PTC and Slate Office

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

The idea behind PTC Inc and Slate Office REIT 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.