Correlation Between PJT Partners and Bank of NT
Can any of the company-specific risk be diversified away by investing in both PJT Partners and Bank of NT 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 Bank of NT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PJT Partners and Bank of NT, you can compare the effects of market volatilities on PJT Partners and Bank of NT 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 Bank of NT. Check out your portfolio center. Please also check ongoing floating volatility patterns of PJT Partners and Bank of NT.
Diversification Opportunities for PJT Partners and Bank of NT
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PJT and Bank is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding PJT Partners and Bank of NT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of NT 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 Bank of NT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of NT has no effect on the direction of PJT Partners i.e., PJT Partners and Bank of NT go up and down completely randomly.
Pair Corralation between PJT Partners and Bank of NT
Considering the 90-day investment horizon PJT Partners is expected to generate 1.36 times more return on investment than Bank of NT. However, PJT Partners is 1.36 times more volatile than Bank of NT. It trades about 0.16 of its potential returns per unit of risk. Bank of NT is currently generating about 0.08 per unit of risk. If you would invest 10,746 in PJT Partners on August 24, 2024 and sell it today you would earn a total of 5,335 from holding PJT Partners or generate 49.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PJT Partners vs. Bank of NT
Performance |
| Timeline |
| PJT Partners |
| Bank of NT |
PJT Partners and Bank of NT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PJT Partners and Bank of NT
The main advantage of trading using opposite PJT Partners and Bank of NT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PJT Partners position performs unexpectedly, Bank of NT 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 Bank of NT will offset losses from the drop in Bank of NT's long position.| PJT Partners vs. Scully Royalty | PJT Partners vs. Piper Sandler Companies | PJT Partners vs. Evercore Partners | PJT Partners vs. Moelis Co |
| 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 |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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