Correlation Between PJT Partners and Lion Financial
Can any of the company-specific risk be diversified away by investing in both PJT Partners and Lion Financial 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 PJT Partners and Lion Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PJT Partners and Lion Financial Group, you can compare the effects of market volatilities on PJT Partners and Lion Financial 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 PJT Partners with a short position of Lion Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PJT Partners and Lion Financial.
Diversification Opportunities for PJT Partners and Lion Financial
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between PJT and Lion is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding PJT Partners and Lion Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Financial Group and PJT Partners 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 PJT Partners are associated (or correlated) with Lion Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Financial Group has no effect on the direction of PJT Partners i.e., PJT Partners and Lion Financial go up and down completely randomly.
Pair Corralation between PJT Partners and Lion Financial
Considering the 90-day investment horizon PJT Partners is expected to generate 1.79 times less return on investment than Lion Financial. But when comparing it to its historical volatility, PJT Partners is 5.25 times less risky than Lion Financial. It trades about 0.08 of its potential returns per unit of risk. Lion Financial Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.77 in Lion Financial Group on October 25, 2024 and sell it today you would lose (0.03) from holding Lion Financial Group or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PJT Partners vs. Lion Financial Group
Performance |
| Timeline |
| PJT Partners |
| Lion Financial Group |
PJT Partners and Lion Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PJT Partners and Lion Financial
The main advantage of trading using opposite PJT Partners and Lion Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PJT Partners position performs unexpectedly, Lion Financial 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 Lion Financial will offset losses from the drop in Lion Financial's long position.| PJT Partners vs. Scully Royalty | PJT Partners vs. Piper Sandler Companies | PJT Partners vs. Evercore Partners | PJT Partners vs. Moelis Co |
| Lion Financial vs. Glory Star New | Lion Financial vs. Lion Group Holding | Lion Financial vs. Hall of Fame |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |