Correlation Between PT Perusahaan and NewJersey Resources
Can any of the company-specific risk be diversified away by investing in both PT Perusahaan and NewJersey Resources 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 PT Perusahaan and NewJersey Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Perusahaan Gas and NewJersey Resources, you can compare the effects of market volatilities on PT Perusahaan and NewJersey Resources 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 PT Perusahaan with a short position of NewJersey Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Perusahaan and NewJersey Resources.
Diversification Opportunities for PT Perusahaan and NewJersey Resources
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PPAAF and NewJersey is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding PT Perusahaan Gas and NewJersey Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewJersey Resources and PT Perusahaan 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 PT Perusahaan Gas are associated (or correlated) with NewJersey Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewJersey Resources has no effect on the direction of PT Perusahaan i.e., PT Perusahaan and NewJersey Resources go up and down completely randomly.
Pair Corralation between PT Perusahaan and NewJersey Resources
If you would invest 4,665 in NewJersey Resources on November 1, 2024 and sell it today you would earn a total of 129.50 from holding NewJersey Resources or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
PT Perusahaan Gas vs. NewJersey Resources
Performance |
| Timeline |
| PT Perusahaan Gas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NewJersey Resources |
PT Perusahaan and NewJersey Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Perusahaan and NewJersey Resources
The main advantage of trading using opposite PT Perusahaan and NewJersey Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Perusahaan position performs unexpectedly, NewJersey Resources 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 NewJersey Resources will offset losses from the drop in NewJersey Resources' long position.| PT Perusahaan vs. ENN Energy Holdings | PT Perusahaan vs. APA Group | PT Perusahaan vs. EverGen Infrastructure Corp | PT Perusahaan vs. Beijing Gas Blue |
| NewJersey Resources vs. Atmos Energy | NewJersey Resources vs. UGI Corporation | NewJersey Resources vs. Chesapeake Utilities | NewJersey Resources vs. Spire Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |