Correlation Between Bank of NT and PJT Partners
Can any of the company-specific risk be diversified away by investing in both Bank of NT 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 Bank of NT and PJT Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of NT and PJT Partners, you can compare the effects of market volatilities on Bank of NT 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 Bank of NT with a short position of PJT Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of NT and PJT Partners.
Diversification Opportunities for Bank of NT and PJT Partners
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and PJT is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bank of NT and PJT Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJT Partners and Bank of NT 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 Bank of NT 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 Bank of NT i.e., Bank of NT and PJT Partners go up and down completely randomly.
Pair Corralation between Bank of NT and PJT Partners
Considering the 90-day investment horizon Bank of NT is expected to generate 1.15 times less return on investment than PJT Partners. In addition to that, Bank of NT is 1.29 times more volatile than PJT Partners. It trades about 0.18 of its total potential returns per unit of risk. PJT Partners is currently generating about 0.27 per unit of volatility. If you would invest 15,915 in PJT Partners on November 18, 2024 and sell it today you would earn a total of 1,665 from holding PJT Partners or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of NT vs. PJT Partners
Performance |
| Timeline |
| Bank of NT |
| PJT Partners |
Bank of NT and PJT Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of NT and PJT Partners
The main advantage of trading using opposite Bank of NT and PJT Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of NT 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.| Bank of NT vs. PJT Partners | Bank of NT vs. National Bank Holdings | Bank of NT vs. FB Financial Corp | Bank of NT vs. Northrim BanCorp |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |