Correlation Between JPX Global and LanzaTech Global

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

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

Diversification Opportunities for JPX Global and LanzaTech Global

0.47

Correlation Coefficient

JPX Global  LanzaTech Global

Very weak diversification

The 3 months correlation between JPX and LanzaTech is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding JPX Global and LanzaTech Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LanzaTech Global and JPX Global 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 JPX Global are associated (or correlated) with LanzaTech Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LanzaTech Global has no effect on the direction of JPX Global i.e., JPX Global and LanzaTech Global go up and down completely randomly.

Pair Corralation between JPX Global and LanzaTech Global

If you would invest  101.00  in LanzaTech Global on October 8, 2024 and sell it today you would earn a total of  67.00  from holding LanzaTech Global or generate 66.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

JPX Global  vs.  LanzaTech Global

JPX Global

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JPX Global are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady technical and fundamental indicators, JPX Global showed solid returns over the last few months and may actually be approaching a breakup point.

LanzaTech Global

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LanzaTech Global are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, LanzaTech Global may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with JPX Global and LanzaTech Global

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

The idea behind JPX Global and LanzaTech Global 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.