Correlation Between Lufax Holding and PJT Partners
Can any of the company-specific risk be diversified away by investing in both Lufax Holding 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 Lufax Holding and PJT Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lufax Holding and PJT Partners, you can compare the effects of market volatilities on Lufax Holding 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 Lufax Holding with a short position of PJT Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lufax Holding and PJT Partners.
Diversification Opportunities for Lufax Holding and PJT Partners
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lufax and PJT is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lufax Holding and PJT Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJT Partners and Lufax Holding 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 Lufax Holding 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 Lufax Holding i.e., Lufax Holding and PJT Partners go up and down completely randomly.
Pair Corralation between Lufax Holding and PJT Partners
Allowing for the 90-day total investment horizon Lufax Holding is expected to generate 1.13 times more return on investment than PJT Partners. However, Lufax Holding is 1.13 times more volatile than PJT Partners. It trades about 0.12 of its potential returns per unit of risk. PJT Partners is currently generating about 0.13 per unit of risk. If you would invest 241.00 in Lufax Holding on October 20, 2024 and sell it today you would earn a total of 11.00 from holding Lufax Holding or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lufax Holding vs. PJT Partners
Performance |
| Timeline |
| Lufax Holding |
| PJT Partners |
Lufax Holding and PJT Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lufax Holding and PJT Partners
The main advantage of trading using opposite Lufax Holding and PJT Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lufax Holding 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.| Lufax Holding vs. 360 Finance | Lufax Holding vs. FinVolution Group | Lufax Holding vs. Qudian Inc | Lufax Holding vs. X Financial Class |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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