Correlation Between Journey Energy and Petrus Resources
Can any of the company-specific risk be diversified away by investing in both Journey Energy and Petrus Resources 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 Journey Energy and Petrus Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Journey Energy and Petrus Resources, you can compare the effects of market volatilities on Journey Energy and Petrus Resources 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 Journey Energy with a short position of Petrus Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Journey Energy and Petrus Resources.
Diversification Opportunities for Journey Energy and Petrus Resources
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Journey and Petrus is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Journey Energy and Petrus Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrus Resources and Journey Energy 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 Journey Energy are associated (or correlated) with Petrus Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrus Resources has no effect on the direction of Journey Energy i.e., Journey Energy and Petrus Resources go up and down completely randomly.
Pair Corralation between Journey Energy and Petrus Resources
Assuming the 90 days horizon Journey Energy is expected to under-perform the Petrus Resources. In addition to that, Journey Energy is 2.28 times more volatile than Petrus Resources. It trades about -0.16 of its total potential returns per unit of risk. Petrus Resources is currently generating about -0.25 per unit of volatility. If you would invest 103.00 in Petrus Resources on September 18, 2024 and sell it today you would lose (7.00) from holding Petrus Resources or give up 6.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Journey Energy vs. Petrus Resources
Performance |
| Timeline |
| Journey Energy |
| Petrus Resources |
Journey Energy and Petrus Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Journey Energy and Petrus Resources
The main advantage of trading using opposite Journey Energy and Petrus Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Journey Energy position performs unexpectedly, Petrus Resources 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 Petrus Resources will offset losses from the drop in Petrus Resources' long position.| Journey Energy vs. POSCO Holdings | Journey Energy vs. Schweizerische Nationalbank | Journey Energy vs. Berkshire Hathaway | Journey Energy vs. Berkshire Hathaway |
| Petrus Resources vs. POSCO Holdings | Petrus Resources vs. Schweizerische Nationalbank | Petrus Resources vs. Berkshire Hathaway | Petrus Resources vs. Berkshire Hathaway |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |