Correlation Between Dominion Energy and Just Energy
Can any of the company-specific risk be diversified away by investing in both Dominion Energy and Just Energy 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 Dominion Energy and Just Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dominion Energy and Just Energy Group, you can compare the effects of market volatilities on Dominion Energy and Just Energy 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 Dominion Energy with a short position of Just Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dominion Energy and Just Energy.
Diversification Opportunities for Dominion Energy and Just Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dominion and Just is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dominion Energy and Just Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Just Energy Group and Dominion 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 Dominion Energy are associated (or correlated) with Just Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Just Energy Group has no effect on the direction of Dominion Energy i.e., Dominion Energy and Just Energy go up and down completely randomly.
Pair Corralation between Dominion Energy and Just Energy
If you would invest 4,707 in Dominion Energy on January 25, 2024 and sell it today you would earn a total of 412.00 from holding Dominion Energy or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Dominion Energy vs. Just Energy Group
Performance |
| Timeline |
| Dominion Energy |
| Just Energy Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dominion Energy and Just Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dominion Energy and Just Energy
The main advantage of trading using opposite Dominion Energy and Just Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dominion Energy position performs unexpectedly, Just Energy 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 Just Energy will offset losses from the drop in Just Energy's long position.The idea behind Dominion Energy and Just Energy Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Just Energy vs. Seadrill Limited | Just Energy vs. BlueScope Steel Limited | Just Energy vs. Insteel Industries | Just Energy vs. Gfl Environmental Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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