Correlation Between Susglobal Energy and Northstar Clean
Can any of the company-specific risk be diversified away by investing in both Susglobal Energy and Northstar Clean 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 Northstar Clean 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 Northstar Clean Technologies, you can compare the effects of market volatilities on Susglobal Energy and Northstar Clean 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 Northstar Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Susglobal Energy and Northstar Clean.
Diversification Opportunities for Susglobal Energy and Northstar Clean
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Susglobal and Northstar is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Susglobal Energy Corp and Northstar Clean Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northstar Clean Tech 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 Northstar Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northstar Clean Tech has no effect on the direction of Susglobal Energy i.e., Susglobal Energy and Northstar Clean go up and down completely randomly.
Pair Corralation between Susglobal Energy and Northstar Clean
Given the investment horizon of 90 days Susglobal Energy Corp is expected to generate 2.64 times more return on investment than Northstar Clean. However, Susglobal Energy is 2.64 times more volatile than Northstar Clean Technologies. It trades about 0.03 of its potential returns per unit of risk. Northstar Clean Technologies is currently generating about 0.05 per unit of risk. If you would invest 22.00 in Susglobal Energy Corp on November 29, 2024 and sell it today you would lose (19.10) from holding Susglobal Energy Corp or give up 86.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Susglobal Energy Corp vs. Northstar Clean Technologies
Performance |
| Timeline |
| Susglobal Energy Corp |
| Northstar Clean Tech |
Susglobal Energy and Northstar Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Susglobal Energy and Northstar Clean
The main advantage of trading using opposite Susglobal Energy and Northstar Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Susglobal Energy position performs unexpectedly, Northstar Clean 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 Northstar Clean will offset losses from the drop in Northstar Clean's long position.| Susglobal Energy vs. BQE Water | Susglobal Energy vs. JPX Global | Susglobal Energy vs. Agilyx AS | Susglobal Energy vs. BacTech Environmental |
| Northstar Clean vs. Susglobal Energy Corp | Northstar Clean vs. LanzaTech Global | Northstar Clean vs. Aqua Metals | Northstar Clean vs. LiCycle Holdings Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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