Correlation Between JPX Global and Susglobal Energy

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

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

Diversification Opportunities for JPX Global and Susglobal Energy

0.0

Correlation Coefficient

JPX Global  Susglobal Energy

Pay attention - limited upside

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

Pair Corralation between JPX Global and Susglobal Energy

If you would invest  1.97  in Susglobal Energy Corp on December 28, 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	100.0%
Values	Daily Returns

JPX Global  vs.  Susglobal Energy Corp

JPX Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days JPX Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, JPX Global is not utilizing all of its potentials. The latest stock price disturbance, 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 JPX Global and Susglobal Energy

The main advantage of trading using opposite JPX Global and Susglobal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPX Global 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 JPX Global 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.