Correlation Between Just Energy and Dominion Energy
Can any of the company-specific risk be diversified away by investing in both Just Energy and Dominion 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 Just Energy and Dominion Energy 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 Dominion Energy, you can compare the effects of market volatilities on Just Energy and Dominion 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 Just Energy with a short position of Dominion Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Just Energy and Dominion Energy.
Diversification Opportunities for Just Energy and Dominion Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Just and Dominion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Just Energy Group and Dominion Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dominion Energy 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 Dominion Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dominion Energy has no effect on the direction of Just Energy i.e., Just Energy and Dominion Energy go up and down completely randomly.
Pair Corralation between Just Energy and Dominion Energy
If you would invest 4,668 in Dominion Energy on January 26, 2024 and sell it today you would earn a total of 455.00 from holding Dominion Energy or generate 9.75% 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. Dominion Energy
Performance |
Timeline |
Just Energy Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dominion Energy |
Just Energy and Dominion Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Just Energy and Dominion Energy
The main advantage of trading using opposite Just Energy and Dominion Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Just Energy position performs unexpectedly, Dominion 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 Dominion Energy will offset losses from the drop in Dominion Energy's long position.Just Energy vs. Seadrill Limited | Just Energy vs. BlueScope Steel Limited | Just Energy vs. Insteel Industries | Just Energy vs. Gfl Environmental Holdings |
Dominion Energy vs. Southern Company | Dominion Energy vs. American Electric Power | Dominion Energy vs. Nextera Energy | Dominion Energy vs. Consolidated Edison |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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