Correlation Between Energy Services and Junee Limited
Can any of the company-specific risk be diversified away by investing in both Energy Services and Junee Limited 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 Energy Services and Junee Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Services and Junee Limited Ordinary, you can compare the effects of market volatilities on Energy Services and Junee Limited 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 Energy Services with a short position of Junee Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Services and Junee Limited.
Diversification Opportunities for Energy Services and Junee Limited
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Energy and Junee is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Energy Services and Junee Limited Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Junee Limited Ordinary and Energy Services 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 Energy Services are associated (or correlated) with Junee Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Junee Limited Ordinary has no effect on the direction of Energy Services i.e., Energy Services and Junee Limited go up and down completely randomly.
Pair Corralation between Energy Services and Junee Limited
Given the investment horizon of 90 days Energy Services is expected to generate 1.0 times more return on investment than Junee Limited. However, Energy Services is 1.0 times more volatile than Junee Limited Ordinary. It trades about 0.15 of its potential returns per unit of risk. Junee Limited Ordinary is currently generating about 0.04 per unit of risk. If you would invest 742.00 in Energy Services on September 12, 2024 and sell it today you would earn a total of 876.00 from holding Energy Services or generate 118.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energy Services vs. Junee Limited Ordinary
Performance |
| Timeline |
| Energy Services |
| Junee Limited Ordinary |
Energy Services and Junee Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Services and Junee Limited
The main advantage of trading using opposite Energy Services and Junee Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Services position performs unexpectedly, Junee Limited 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 Junee Limited will offset losses from the drop in Junee Limited's long position.| Energy Services vs. Bouygues SA | Energy Services vs. NV5 Global | Energy Services vs. Matrix Service Co | Energy Services vs. MYR Group |
| Junee Limited vs. Jacobs Solutions | Junee Limited vs. Dycom Industries | Junee Limited vs. Innovate Corp | Junee Limited vs. Energy Services |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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