Correlation Between Susglobal Energy and Aqua Metals
Can any of the company-specific risk be diversified away by investing in both Susglobal Energy and Aqua Metals 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 Susglobal Energy and Aqua Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Susglobal Energy Corp and Aqua Metals, you can compare the effects of market volatilities on Susglobal Energy and Aqua Metals 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 Susglobal Energy with a short position of Aqua Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Susglobal Energy and Aqua Metals.
Diversification Opportunities for Susglobal Energy and Aqua Metals
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Susglobal and Aqua is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Susglobal Energy Corp and Aqua Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqua Metals and Susglobal 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 Susglobal Energy Corp are associated (or correlated) with Aqua Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqua Metals has no effect on the direction of Susglobal Energy i.e., Susglobal Energy and Aqua Metals go up and down completely randomly.
Pair Corralation between Susglobal Energy and Aqua Metals
Given the investment horizon of 90 days Susglobal Energy Corp is expected to generate 1.7 times more return on investment than Aqua Metals. However, Susglobal Energy is 1.7 times more volatile than Aqua Metals. It trades about 0.05 of its potential returns per unit of risk. Aqua Metals is currently generating about -0.02 per unit of risk. If you would invest 2.40 in Susglobal Energy Corp on November 2, 2024 and sell it today you would lose (0.40) from holding Susglobal Energy Corp or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Susglobal Energy Corp vs. Aqua Metals
Performance |
| Timeline |
| Susglobal Energy Corp |
| Aqua Metals |
Susglobal Energy and Aqua Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Susglobal Energy and Aqua Metals
The main advantage of trading using opposite Susglobal Energy and Aqua Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Susglobal Energy position performs unexpectedly, Aqua Metals 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 Aqua Metals will offset losses from the drop in Aqua Metals' long position.| Susglobal Energy vs. BQE Water | Susglobal Energy vs. JPX Global | Susglobal Energy vs. Houston Natural Resources | Susglobal Energy vs. Agilyx AS |
| Aqua Metals vs. LanzaTech Global | Aqua Metals vs. Waste Management | Aqua Metals vs. Clean Harbors | Aqua Metals vs. Casella Waste Systems |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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