Correlation Between Jourdan Resources and Pershing Resources

Can any of the company-specific risk be diversified away by investing in both Jourdan Resources and Pershing 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 Jourdan Resources and Pershing Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jourdan Resources and Pershing Resources, you can compare the effects of market volatilities on Jourdan Resources and Pershing 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 Jourdan Resources with a short position of Pershing Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jourdan Resources and Pershing Resources.

Diversification Opportunities for Jourdan Resources and Pershing Resources

-0.54

Correlation Coefficient

Jourdan Resources  Pershing Resources

Excellent diversification

The 3 months correlation between Jourdan and Pershing is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jourdan Resources and Pershing Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pershing Resources and Jourdan Resources 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 Jourdan Resources are associated (or correlated) with Pershing Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pershing Resources has no effect on the direction of Jourdan Resources i.e., Jourdan Resources and Pershing Resources go up and down completely randomly.

Pair Corralation between Jourdan Resources and Pershing Resources

Assuming the 90 days horizon Jourdan Resources is expected to under-perform the Pershing Resources. But the pink sheet apears to be less risky and, when comparing its historical volatility, Jourdan Resources is 1.28 times less risky than Pershing Resources. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Pershing Resources is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1.02  in Pershing Resources on December 30, 2024 and sell it today you would earn a total of  1.32  from holding Pershing Resources or generate 129.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Jourdan Resources  vs.  Pershing Resources

Jourdan Resources

Risk-Adjusted Performance

Weak

Over the last 90 days Jourdan Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pershing Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pershing Resources are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile technical and fundamental indicators, Pershing Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jourdan Resources and Pershing Resources

The main advantage of trading using opposite Jourdan Resources and Pershing Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jourdan Resources position performs unexpectedly, Pershing 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 Pershing Resources will offset losses from the drop in Pershing Resources' long position.

The idea behind Jourdan Resources and Pershing Resources 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.