Correlation Between Northstar Clean and Susglobal Energy
Can any of the company-specific risk be diversified away by investing in both Northstar Clean 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 Northstar Clean and Susglobal Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northstar Clean Technologies and Susglobal Energy Corp, you can compare the effects of market volatilities on Northstar Clean 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 Northstar Clean with a short position of Susglobal Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northstar Clean and Susglobal Energy.
Diversification Opportunities for Northstar Clean and Susglobal Energy
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Northstar and Susglobal is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Northstar Clean Technologies 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 Northstar Clean 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 Northstar Clean Technologies 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 Northstar Clean i.e., Northstar Clean and Susglobal Energy go up and down completely randomly.
Pair Corralation between Northstar Clean and Susglobal Energy
Assuming the 90 days horizon Northstar Clean is expected to generate 3.91 times less return on investment than Susglobal Energy. But when comparing it to its historical volatility, Northstar Clean Technologies is 4.41 times less risky than Susglobal Energy. It trades about 0.08 of its potential returns per unit of risk. Susglobal Energy Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2.40 in Susglobal Energy Corp on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Susglobal Energy Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northstar Clean Technologies vs. Susglobal Energy Corp
Performance |
| Timeline |
| Northstar Clean Tech |
| Susglobal Energy Corp |
Northstar Clean and Susglobal Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northstar Clean and Susglobal Energy
The main advantage of trading using opposite Northstar Clean and Susglobal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northstar Clean 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.| Northstar Clean vs. Susglobal Energy Corp | Northstar Clean vs. LanzaTech Global | Northstar Clean vs. Aqua Metals | Northstar Clean vs. LiCycle Holdings Corp |
| Susglobal Energy vs. Ecoloclean Industrs | Susglobal Energy vs. JPX Global | Susglobal Energy vs. Majic Wheels Corp | Susglobal Energy vs. BQE Water |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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