Correlation Between Susglobal Energy and BQE Water
Can any of the company-specific risk be diversified away by investing in both Susglobal Energy and BQE Water 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 BQE Water 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 BQE Water, you can compare the effects of market volatilities on Susglobal Energy and BQE Water 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 BQE Water. Check out your portfolio center. Please also check ongoing floating volatility patterns of Susglobal Energy and BQE Water.
Diversification Opportunities for Susglobal Energy and BQE Water
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Susglobal and BQE is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Susglobal Energy Corp and BQE Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BQE Water 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 BQE Water. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BQE Water has no effect on the direction of Susglobal Energy i.e., Susglobal Energy and BQE Water go up and down completely randomly.
Pair Corralation between Susglobal Energy and BQE Water
Given the investment horizon of 90 days Susglobal Energy Corp is expected to generate 3.8 times more return on investment than BQE Water. However, Susglobal Energy is 3.8 times more volatile than BQE Water. It trades about 0.03 of its potential returns per unit of risk. BQE Water is currently generating about 0.05 per unit of risk. If you would invest 21.00 in Susglobal Energy Corp on November 2, 2024 and sell it today you would lose (19.00) from holding Susglobal Energy Corp or give up 90.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Susglobal Energy Corp vs. BQE Water
Performance |
| Timeline |
| Susglobal Energy Corp |
| BQE Water |
Susglobal Energy and BQE Water Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Susglobal Energy and BQE Water
The main advantage of trading using opposite Susglobal Energy and BQE Water positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Susglobal Energy position performs unexpectedly, BQE Water 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 BQE Water will offset losses from the drop in BQE Water's long position.| Susglobal Energy vs. BQE Water | Susglobal Energy vs. JPX Global | Susglobal Energy vs. Houston Natural Resources | Susglobal Energy vs. Agilyx AS |
| BQE Water vs. JPX Global | BQE Water vs. Susglobal Energy Corp | BQE Water vs. Houston Natural Resources | BQE Water 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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