Correlation Between JPX Global and Susglobal Energy
Can any of the company-specific risk be diversified away by investing in both JPX Global 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 JPX Global and Susglobal Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPX Global and Susglobal Energy Corp, you can compare the effects of market volatilities on JPX Global 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 JPX Global with a short position of Susglobal Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPX Global and Susglobal Energy.
Diversification Opportunities for JPX Global and Susglobal Energy
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JPX and Susglobal is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding JPX Global 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 JPX Global 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 JPX Global 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 JPX Global i.e., JPX Global and Susglobal Energy go up and down completely randomly.
Pair Corralation between JPX Global and Susglobal Energy
If you would invest 1.85 in Susglobal Energy Corp on November 1, 2024 and sell it today you would earn a total of 0.15 from holding Susglobal Energy Corp or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
JPX Global vs. Susglobal Energy Corp
Performance |
| Timeline |
| JPX Global |
| Susglobal Energy Corp |
JPX Global and Susglobal Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPX Global and Susglobal Energy
The main advantage of trading using opposite JPX Global and Susglobal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPX Global 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.| JPX Global vs. Houston Natural Resources | JPX Global vs. Ecosciences | JPX Global vs. Ecoloclean Industrs | JPX Global vs. Garb Oil Pwr |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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