Correlation Between Pershing Resources and Jourdan Resources

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

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

Diversification Opportunities for Pershing Resources and Jourdan Resources

-0.54

Correlation Coefficient

Pershing Resources  Jourdan Resources

Excellent diversification

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

Pair Corralation between Pershing Resources and Jourdan Resources

Given the investment horizon of 90 days Pershing Resources is expected to generate 1.28 times more return on investment than Jourdan Resources. However, Pershing Resources is 1.28 times more volatile than Jourdan Resources. It trades about 0.15 of its potential returns per unit of risk. Jourdan Resources is currently generating about -0.02 per unit of risk. 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

Pershing Resources  vs.  Jourdan Resources

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.

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.

Pair Trading with Pershing Resources and Jourdan Resources

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

The idea behind Pershing Resources and Jourdan 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.