Correlation Between Just Energy and FirstEnergy
Can any of the company-specific risk be diversified away by investing in both Just Energy and FirstEnergy 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 Just Energy and FirstEnergy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Just Energy Group and FirstEnergy, you can compare the effects of market volatilities on Just Energy and FirstEnergy 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 Just Energy with a short position of FirstEnergy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Just Energy and FirstEnergy.
Diversification Opportunities for Just Energy and FirstEnergy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Just and FirstEnergy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Just Energy Group and FirstEnergy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstEnergy and Just 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 Just Energy Group are associated (or correlated) with FirstEnergy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstEnergy has no effect on the direction of Just Energy i.e., Just Energy and FirstEnergy go up and down completely randomly.
Pair Corralation between Just Energy and FirstEnergy
If you would invest 3,597 in FirstEnergy on January 26, 2024 and sell it today you would earn a total of 233.00 from holding FirstEnergy or generate 6.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Just Energy Group vs. FirstEnergy
Performance |
Timeline |
Just Energy Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FirstEnergy |
Just Energy and FirstEnergy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Just Energy and FirstEnergy
The main advantage of trading using opposite Just Energy and FirstEnergy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Just Energy position performs unexpectedly, FirstEnergy 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 FirstEnergy will offset losses from the drop in FirstEnergy's long position.Just Energy vs. Skechers USA | Just Energy vs. Lincoln Electric Holdings | Just Energy vs. Eastern Co | Just Energy vs. Calliditas Therapeutics |
FirstEnergy vs. Dominion Energy | FirstEnergy vs. Consolidated Edison | FirstEnergy vs. Edison International |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |