Correlation Between Plains GP and Jaws Hurricane
Can any of the company-specific risk be diversified away by investing in both Plains GP and Jaws Hurricane 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 Plains GP and Jaws Hurricane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plains GP Holdings and Jaws Hurricane Acquisition, you can compare the effects of market volatilities on Plains GP and Jaws Hurricane 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 Plains GP with a short position of Jaws Hurricane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plains GP and Jaws Hurricane.
Diversification Opportunities for Plains GP and Jaws Hurricane
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Plains and Jaws is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Plains GP Holdings and Jaws Hurricane Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaws Hurricane Acqui and Plains GP 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 Plains GP Holdings are associated (or correlated) with Jaws Hurricane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaws Hurricane Acqui has no effect on the direction of Plains GP i.e., Plains GP and Jaws Hurricane go up and down completely randomly.
Pair Corralation between Plains GP and Jaws Hurricane
If you would invest 1,820 in Plains GP Holdings on October 21, 2024 and sell it today you would earn a total of 323.00 from holding Plains GP Holdings or generate 17.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Plains GP Holdings vs. Jaws Hurricane Acquisition
Performance |
| Timeline |
| Plains GP Holdings |
| Jaws Hurricane Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Plains GP and Jaws Hurricane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plains GP and Jaws Hurricane
The main advantage of trading using opposite Plains GP and Jaws Hurricane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plains GP position performs unexpectedly, Jaws Hurricane 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 Jaws Hurricane will offset losses from the drop in Jaws Hurricane's long position.| Plains GP vs. Targa Resources | Plains GP vs. Western Midstream Partners | Plains GP vs. MPLX LP | Plains GP vs. Plains All American |
| Jaws Hurricane vs. Energy and Environmental | Jaws Hurricane vs. Lizhan Environmental | Jaws Hurricane vs. ARIA Wireless Systems | Jaws Hurricane vs. Nippon Steel Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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