Correlation Between Interactive Brokers and PJT Partners
Can any of the company-specific risk be diversified away by investing in both Interactive Brokers and PJT Partners 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 Interactive Brokers and PJT Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interactive Brokers Group and PJT Partners, you can compare the effects of market volatilities on Interactive Brokers and PJT Partners 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 Interactive Brokers with a short position of PJT Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interactive Brokers and PJT Partners.
Diversification Opportunities for Interactive Brokers and PJT Partners
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Interactive and PJT is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Brokers Group and PJT Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJT Partners and Interactive Brokers 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 Interactive Brokers Group are associated (or correlated) with PJT Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJT Partners has no effect on the direction of Interactive Brokers i.e., Interactive Brokers and PJT Partners go up and down completely randomly.
Pair Corralation between Interactive Brokers and PJT Partners
Given the investment horizon of 90 days Interactive Brokers Group is expected to generate 0.79 times more return on investment than PJT Partners. However, Interactive Brokers Group is 1.26 times less risky than PJT Partners. It trades about 0.32 of its potential returns per unit of risk. PJT Partners is currently generating about 0.19 per unit of risk. If you would invest 12,889 in Interactive Brokers Group on August 30, 2024 and sell it today you would earn a total of 6,242 from holding Interactive Brokers Group or generate 48.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interactive Brokers Group vs. PJT Partners
Performance |
| Timeline |
| Interactive Brokers |
| PJT Partners |
Interactive Brokers and PJT Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interactive Brokers and PJT Partners
The main advantage of trading using opposite Interactive Brokers and PJT Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interactive Brokers position performs unexpectedly, PJT Partners 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 PJT Partners will offset losses from the drop in PJT Partners' long position.| Interactive Brokers vs. United Homes Group | Interactive Brokers vs. Dine Brands Global | Interactive Brokers vs. Aegean Airlines SA | Interactive Brokers vs. Ryanair Holdings PLC |
| PJT Partners vs. Scully Royalty | PJT Partners vs. Piper Sandler Companies | PJT Partners vs. Evercore Partners | PJT Partners vs. Moelis Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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