Correlation Between EcoPlus and Susglobal Energy
Can any of the company-specific risk be diversified away by investing in both EcoPlus and Susglobal 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 EcoPlus and Susglobal Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EcoPlus and Susglobal Energy Corp, you can compare the effects of market volatilities on EcoPlus and Susglobal 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 EcoPlus with a short position of Susglobal Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of EcoPlus and Susglobal Energy.
Diversification Opportunities for EcoPlus and Susglobal Energy
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EcoPlus and Susglobal is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding EcoPlus and Susglobal Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Susglobal Energy Corp and EcoPlus 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 EcoPlus are associated (or correlated) with Susglobal Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Susglobal Energy Corp has no effect on the direction of EcoPlus i.e., EcoPlus and Susglobal Energy go up and down completely randomly.
Pair Corralation between EcoPlus and Susglobal Energy
Given the investment horizon of 90 days EcoPlus is expected to generate 1.48 times less return on investment than Susglobal Energy. In addition to that, EcoPlus is 1.26 times more volatile than Susglobal Energy Corp. It trades about 0.07 of its total potential returns per unit of risk. Susglobal Energy Corp is currently generating about 0.13 per unit of volatility. If you would invest 1.90 in Susglobal Energy Corp on November 3, 2024 and sell it today you would earn a total of 0.45 from holding Susglobal Energy Corp or generate 23.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
EcoPlus vs. Susglobal Energy Corp
Performance |
| Timeline |
| EcoPlus |
| Susglobal Energy Corp |
EcoPlus and Susglobal Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EcoPlus and Susglobal Energy
The main advantage of trading using opposite EcoPlus and Susglobal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EcoPlus position performs unexpectedly, Susglobal 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 Susglobal Energy will offset losses from the drop in Susglobal Energy's long position.The idea behind EcoPlus and Susglobal Energy 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.| Susglobal Energy vs. BQE Water | Susglobal Energy vs. JPX Global | Susglobal Energy vs. Houston Natural Resources | Susglobal Energy vs. Agilyx AS |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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