Correlation Between PBF Energy and Gartner

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Can any of the company-specific risk be diversified away by investing in both PBF Energy and Gartner 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 PBF Energy and Gartner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PBF Energy and Gartner, you can compare the effects of market volatilities on PBF Energy and Gartner 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 PBF Energy with a short position of Gartner. Check out your portfolio center. Please also check ongoing floating volatility patterns of PBF Energy and Gartner.

Diversification Opportunities for PBF Energy and Gartner

0.42
  Correlation Coefficient

Very weak diversification

The 3 months correlation between PBF Energy and Gartner is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding PBF Energy and Gartner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gartner and PBF 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 PBF Energy are associated (or correlated) with Gartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gartner has no effect on the direction of PBF Energy i.e., PBF Energy and Gartner go up and down completely randomly.

Pair Corralation between PBF Energy and Gartner

Considering the 90-day investment horizon PBF Energy is expected to generate 2.38 times more return on investment than Gartner. However, PBF Energy is 2.38 times more volatile than Gartner. It trades about 0.09 of its potential returns per unit of risk. Gartner is currently generating about 0.08 per unit of risk. If you would invest  678.00  in PBF Energy on September 9, 2022 and sell it today you would earn a total of  2,623  from holding PBF Energy or generate 386.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

PBF Energy  vs.  Gartner

 Performance (%) 
       Timeline  
PBF Energy 
PBF Energy Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in PBF Energy are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental drivers, PBF Energy is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

PBF Energy Price Channel

Gartner 
Gartner Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Gartner are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Gartner may actually be approaching a critical reversion point that can send shares even higher in January 2023.

Gartner Price Channel

PBF Energy and Gartner Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PBF Energy and Gartner

The main advantage of trading using opposite PBF Energy and Gartner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PBF Energy position performs unexpectedly, Gartner 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 Gartner will offset losses from the drop in Gartner's long position.
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The idea behind PBF Energy and Gartner 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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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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