Correlation Between PJT Partners and Up Fintech
Can any of the company-specific risk be diversified away by investing in both PJT Partners and Up Fintech 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 Up Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PJT Partners and Up Fintech Holding, you can compare the effects of market volatilities on PJT Partners and Up Fintech 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 Up Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of PJT Partners and Up Fintech.
Diversification Opportunities for PJT Partners and Up Fintech
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PJT and TIGR is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding PJT Partners and Up Fintech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Up Fintech Holding 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 Up Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Up Fintech Holding has no effect on the direction of PJT Partners i.e., PJT Partners and Up Fintech go up and down completely randomly.
Pair Corralation between PJT Partners and Up Fintech
Considering the 90-day investment horizon PJT Partners is expected to generate 0.71 times more return on investment than Up Fintech. However, PJT Partners is 1.41 times less risky than Up Fintech. It trades about 0.24 of its potential returns per unit of risk. Up Fintech Holding is currently generating about -0.07 per unit of risk. If you would invest 13,867 in PJT Partners on August 30, 2024 and sell it today you would earn a total of 2,652 from holding PJT Partners or generate 19.12% 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. Up Fintech Holding
Performance |
| Timeline |
| PJT Partners |
| Up Fintech Holding |
PJT Partners and Up Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PJT Partners and Up Fintech
The main advantage of trading using opposite PJT Partners and Up Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PJT Partners position performs unexpectedly, Up Fintech 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 Up Fintech will offset losses from the drop in Up Fintech's long position.| PJT Partners vs. Scully Royalty | PJT Partners vs. Piper Sandler Companies | PJT Partners vs. Evercore Partners | PJT Partners vs. Moelis Co |
| Up Fintech vs. Bit Digital | Up Fintech vs. Marathon Digital Holdings | Up Fintech vs. Xp Inc | Up Fintech vs. Bitfarms |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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