Correlation Between JAN Old and Susglobal Energy

Can any of the company-specific risk be diversified away by investing in both JAN Old 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 JAN Old and Susglobal Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for JAN Old and Susglobal Energy

0.0

Correlation Coefficient

JAN Old  Susglobal Energy

Pay attention - limited upside

The 3 months correlation between JAN and Susglobal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JAN Old 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 JAN Old 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 JAN Old 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 JAN Old i.e., JAN Old and Susglobal Energy go up and down completely randomly.

Pair Corralation between JAN Old and Susglobal Energy

If you would invest  1.97  in Susglobal Energy Corp on December 29, 2024 and sell it today you would earn a total of  2.43  from holding Susglobal Energy Corp or generate 123.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

JAN Old  vs.  Susglobal Energy Corp

JAN Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days JAN Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, JAN Old is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Susglobal Energy Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Susglobal Energy Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Susglobal Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JAN Old and Susglobal Energy

The main advantage of trading using opposite JAN Old and Susglobal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAN Old 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.

The idea behind JAN Old and Susglobal Energy 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.