Correlation Between PBF Energy and Idemitsu Kosan
Can any of the company-specific risk be diversified away by investing in both PBF Energy and Idemitsu Kosan 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 PBF Energy and Idemitsu Kosan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PBF Energy and Idemitsu Kosan Co, you can compare the effects of market volatilities on PBF Energy and Idemitsu Kosan 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 PBF Energy with a short position of Idemitsu Kosan. Check out your portfolio center. Please also check ongoing floating volatility patterns of PBF Energy and Idemitsu Kosan.
Diversification Opportunities for PBF Energy and Idemitsu Kosan
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PBF and Idemitsu is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding PBF Energy and Idemitsu Kosan Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idemitsu Kosan and PBF 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 PBF Energy are associated (or correlated) with Idemitsu Kosan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idemitsu Kosan has no effect on the direction of PBF Energy i.e., PBF Energy and Idemitsu Kosan go up and down completely randomly.
Pair Corralation between PBF Energy and Idemitsu Kosan
Considering the 90-day investment horizon PBF Energy is expected to under-perform the Idemitsu Kosan. But the stock apears to be less risky and, when comparing its historical volatility, PBF Energy is 1.25 times less risky than Idemitsu Kosan. The stock trades about -0.04 of its potential returns per unit of risk. The Idemitsu Kosan Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,197 in Idemitsu Kosan Co on November 3, 2024 and sell it today you would earn a total of 126.00 from holding Idemitsu Kosan Co or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
PBF Energy vs. Idemitsu Kosan Co
Performance |
| Timeline |
| PBF Energy |
| Idemitsu Kosan |
PBF Energy and Idemitsu Kosan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PBF Energy and Idemitsu Kosan
The main advantage of trading using opposite PBF Energy and Idemitsu Kosan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PBF Energy position performs unexpectedly, Idemitsu Kosan 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 Idemitsu Kosan will offset losses from the drop in Idemitsu Kosan's long position.| PBF Energy vs. Delek Energy | PBF Energy vs. CVR Energy | PBF Energy vs. Valero Energy | PBF Energy vs. Marathon Petroleum Corp |
| Idemitsu Kosan vs. Eneos Holdings ADR | Idemitsu Kosan vs. HF Sinclair Corp | Idemitsu Kosan vs. Idemitsu Kosan CoLtd | Idemitsu Kosan vs. PBF Energy |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| 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 | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |