Correlation Between Webus International and PTC

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

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

Diversification Opportunities for Webus International and PTC

-0.66

Correlation Coefficient

Webus International  PTC

Excellent diversification

The 3 months correlation between Webus and PTC is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Webus International Limited and PTC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTC Inc and Webus International 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 Webus International Limited are associated (or correlated) with PTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTC Inc has no effect on the direction of Webus International i.e., Webus International and PTC go up and down completely randomly.

Pair Corralation between Webus International and PTC

Given the investment horizon of 90 days Webus International Limited is expected to under-perform the PTC. In addition to that, Webus International is 4.06 times more volatile than PTC Inc. It trades about -0.07 of its total potential returns per unit of risk. PTC Inc is currently generating about 0.17 per unit of volatility. If you would invest  16,133  in PTC Inc on May 5, 2025 and sell it today you would earn a total of  5,078  from holding PTC Inc or generate 31.48% return on investment over 90 days.

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

Webus International Limited  vs.  PTC Inc

Webus International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Webus International Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

PTC Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PTC Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, PTC exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Webus International and PTC

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

The idea behind Webus International Limited and PTC 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.