Correlation Between Eguana Technologies and FuelPositive Corp

Can any of the company-specific risk be diversified away by investing in both Eguana Technologies and FuelPositive Corp 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 Eguana Technologies and FuelPositive Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eguana Technologies and FuelPositive Corp, you can compare the effects of market volatilities on Eguana Technologies and FuelPositive Corp 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 Eguana Technologies with a short position of FuelPositive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eguana Technologies and FuelPositive Corp.

Diversification Opportunities for Eguana Technologies and FuelPositive Corp

0.0

Correlation Coefficient

Eguana Technologies  FuelPositive Corp

Pay attention - limited upside

The 3 months correlation between Eguana and FuelPositive is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eguana Technologies and FuelPositive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FuelPositive Corp and Eguana Technologies 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 Eguana Technologies are associated (or correlated) with FuelPositive Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FuelPositive Corp has no effect on the direction of Eguana Technologies i.e., Eguana Technologies and FuelPositive Corp go up and down completely randomly.

Pair Corralation between Eguana Technologies and FuelPositive Corp

If you would invest  3.00  in FuelPositive Corp on September 4, 2024 and sell it today you would earn a total of  0.00  from holding FuelPositive Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Eguana Technologies  vs.  FuelPositive Corp

Eguana Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eguana Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Eguana Technologies is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

FuelPositive Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FuelPositive Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, FuelPositive Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eguana Technologies and FuelPositive Corp

The main advantage of trading using opposite Eguana Technologies and FuelPositive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eguana Technologies position performs unexpectedly, FuelPositive Corp 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 FuelPositive Corp will offset losses from the drop in FuelPositive Corp's long position.

The idea behind Eguana Technologies and FuelPositive Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..