Correlation Between PJT Partners and Helix Acquisition

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

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

Diversification Opportunities for PJT Partners and Helix Acquisition

-0.11

Correlation Coefficient

PJT Partners  Helix Acquisition

Good diversification

The 3 months correlation between PJT and Helix is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding PJT Partners and Helix Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helix Acquisition Corp and PJT Partners 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 PJT Partners are associated (or correlated) with Helix Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helix Acquisition Corp has no effect on the direction of PJT Partners i.e., PJT Partners and Helix Acquisition go up and down completely randomly.

Pair Corralation between PJT Partners and Helix Acquisition

Considering the 90-day investment horizon PJT Partners is expected to under-perform the Helix Acquisition. In addition to that, PJT Partners is 1.59 times more volatile than Helix Acquisition Corp. It trades about -0.06 of its total potential returns per unit of risk. Helix Acquisition Corp is currently generating about 0.04 per unit of volatility. If you would invest  1,041  in Helix Acquisition Corp on December 26, 2024 and sell it today you would earn a total of  25.00  from holding Helix Acquisition Corp or generate 2.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PJT Partners  vs.  Helix Acquisition Corp

PJT Partners

Risk-Adjusted Performance

Very Weak

Over the last 90 days PJT Partners has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's forward-looking indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Helix Acquisition Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Helix Acquisition Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Helix Acquisition is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with PJT Partners and Helix Acquisition

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

The idea behind PJT Partners and Helix Acquisition Corp 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.