Correlation Between Plains GP and Jaws Juggernaut
Can any of the company-specific risk be diversified away by investing in both Plains GP and Jaws Juggernaut 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 Juggernaut 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 Juggernaut Acquisition, you can compare the effects of market volatilities on Plains GP and Jaws Juggernaut 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 Juggernaut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plains GP and Jaws Juggernaut.
Diversification Opportunities for Plains GP and Jaws Juggernaut
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Plains and Jaws is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Plains GP Holdings and Jaws Juggernaut Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaws Juggernaut Acqu 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 Juggernaut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaws Juggernaut Acqu has no effect on the direction of Plains GP i.e., Plains GP and Jaws Juggernaut go up and down completely randomly.
Pair Corralation between Plains GP and Jaws Juggernaut
If you would invest 1,852 in Plains GP Holdings on November 2, 2024 and sell it today you would earn a total of 361.00 from holding Plains GP Holdings or generate 19.49% 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 Juggernaut Acquisition
Performance |
| Timeline |
| Plains GP Holdings |
| Jaws Juggernaut Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Plains GP and Jaws Juggernaut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plains GP and Jaws Juggernaut
The main advantage of trading using opposite Plains GP and Jaws Juggernaut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plains GP position performs unexpectedly, Jaws Juggernaut 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 Juggernaut will offset losses from the drop in Jaws Juggernaut'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 |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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