Correlation Between Eguana Technologies and FuelPositive Corp
Can any of the company-specific risk be diversified away by investing in both Eguana Technologies and FuelPositive Corp 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 Eguana Technologies and FuelPositive Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eguana Technologies and FuelPositive Corp, you can compare the effects of market volatilities on Eguana Technologies and FuelPositive Corp 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 Eguana Technologies with a short position of FuelPositive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eguana Technologies and FuelPositive Corp.
Diversification Opportunities for Eguana Technologies and FuelPositive Corp
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eguana and FuelPositive is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Eguana Technologies and FuelPositive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FuelPositive Corp and Eguana Technologies 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 Eguana Technologies are associated (or correlated) with FuelPositive Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FuelPositive Corp has no effect on the direction of Eguana Technologies i.e., Eguana Technologies and FuelPositive Corp go up and down completely randomly.
Pair Corralation between Eguana Technologies and FuelPositive Corp
Assuming the 90 days horizon Eguana Technologies is expected to generate 1.35 times more return on investment than FuelPositive Corp. However, Eguana Technologies is 1.35 times more volatile than FuelPositive Corp. It trades about 0.01 of its potential returns per unit of risk. FuelPositive Corp is currently generating about 0.02 per unit of risk. If you would invest 20.00 in Eguana Technologies on August 28, 2024 and sell it today you would lose (19.48) from holding Eguana Technologies or give up 97.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eguana Technologies vs. FuelPositive Corp
Performance |
| Timeline |
| Eguana Technologies |
| FuelPositive Corp |
Eguana Technologies and FuelPositive Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eguana Technologies and FuelPositive Corp
The main advantage of trading using opposite Eguana Technologies and FuelPositive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eguana Technologies position performs unexpectedly, FuelPositive Corp 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 FuelPositive Corp will offset losses from the drop in FuelPositive Corp's long position.| Eguana Technologies vs. Element Solutions | Eguana Technologies vs. Orion Engineered Carbons | Eguana Technologies vs. Minerals Technologies | Eguana Technologies vs. Ingevity Corp |
| FuelPositive Corp vs. AmmPower Corp | FuelPositive Corp vs. FuelPositive Corp | FuelPositive Corp vs. Graphene Manufacturing Group | FuelPositive Corp vs. Exro Technologies |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |